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Home > Country Profiles > Pakistan

Country Profiles

Financial Outlook

The 2013/14 budget is the first budget of the administration of Prime Minister Nawaz Sharif. It sets out expenditure of 3.5 trillion Pakistani rupees (1 rupee is approximately US$0.01) and targets GDP growth through the 2013/14 fiscal year of 4.8%, with inflation predicted to run at 9.5%. The budget sets the fiscal deficit at 6.3%. The budget was presented as an investment- and business-friendly budget, and sets aside a record Rs1.155 trillion for the country’s public sector development program. This is deliberately designed to stimulate the economy. The budget raises the level of the general sales tax from 16% to 17%. Government workers are to get a 10% increase in their pensions, and the minimum monthly pension was raised from Rs3,000 to Rs5,000. Pakistan’s endemic high inflation continues, with the target rate for 2014 set at 9.5%. This compares well, however, to the average rate over the last five years of 13%. However, Pakistan has dire problems supplying its industrial and power generation sectors with gas and is over-dependent on expensive crude oil from Kuwait. Energy costs in Pakistan remain the most expensive in Asia.

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Further reading on Pakistan

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