This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Pakistan Unveils New Budget But IMF Still has Concerns over Numbers
June 13, 2022
Pakistan’s new coalition government unveiled a new budget where it will increase taxes for the rich, reduce tax leakages and monetize government assets. From July 1, the government will impose a 2% additional tax on individuals having income more than PKR 30mn ($150k). Pakistan has set a target to raise PKR 96bn ($480mn) from the privatization of assets. Government officials are also banned from buying new cars in order to reduce fuel consumption. The government expects that preventing tax evasion would raise revenues by 20% to PKR 7tn ($34.65bn) and target a fiscal deficit of 4.9% of GDP for the new financial year vs. 8.6% of GDP in the year gone by. With these measures, Pakistan seeks a bailout package from IMF. However, a day after unveiling the budget, Pakistan’s finance minister indicated that IMF has expressed concerns about the higher fiscal deficit, fuel subsidies, and the need to raise more direct taxes. Pakistan is in need of funds as its foreign reserves have dwindled below $10bn, sufficient to cover only 45 days of imports.
Pakistan’s dollar bonds were trading marginally higher with its 7.875% 2036s up over 0.2 points to 63.16 yielding 13.96%.
For the full story, click here
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.