Trade and fiscal deficits are the only two major setbacks that have been faced by the PTI Govt since 2018. Mini budgets were presented times and again to rescue the Pakistani Economy, however, desired results were far away from the destination. Asad Umar –former Finance Minister- tried his best to strengthen the economy of Pakistan. Unfortunately, his way of working as a finance minister couldn’t be considered a good gesture and removed after a short period of time.
Almost all the economic indicators were spreading disappointment among Pakistanis. Nevertheless, Hafeez sheik gave hope by telling that fiscal and trade deficit’s trajectory began to move upward.
The trade deficit has been shrunk by 35% while fiscal deficit has been reduced up to 36% in the first quarter of the year. It is a mind-blowing achievement by PTI Government.
The trade deficit is narrowed down owing to the sizeable reduction of imports. Moreover, cutting down the other development expenditure brings a reduction in fiscal deficit.
Aside from these factors, tax collection is another challenge to Pakistan Economy. Previously, FBR has failed in the collection of targeted taxes. Notwithstanding, in this quarter, FBR also shows improvement by 16%.