ProPakistani Roundup: Here’s Everything You Want to Know About Budget 2018-19

The sixth and final budget of PML-N’s term has been announced by the newly appointed Finance Minister, Miftah Ismail.

For the fiscal year 2018-19, the outlay for the budget is Rs. 5.938 trillion, which is 16.2% higher than the previous budget.

In the latest budget, the government increased allocations for defense and cut development expenditures. Economists called it an “election budget.”

The opposition also aligned their opinion with the economists and claimed that the budget is ‘politically motivated’ to win over the support of the authorities and voters in the upcoming general elections.

The primary focus of the budget is on stimulating the economic growth by setting aside a substantial amount for development projects, social safety nets, agriculture and industrial sectors.

Budget Strategy:

The macroeconomic policy aims to address the imbalances of the external account while protecting the economic growth. Here are the key targets of the 2018-19 budget strategy:

  • Real GDP growth rate of 6.2%
  • Inflation to remain below 6%
  • Tax to GDP ratio of 13.8%
  • Budget deficit of 4.9% of GDP
  • Net Public Debt at 63.2% of GDP
  • Foreign exchange reserves of $15 billion
  • Continuation of social protection programmes

We’ve compiled a list of important announcements from the budget and you can view ProPakistani’s in-depth coverage of the budget for the fiscal year 2018-19 below: