Overseas Pakistanis remitted $27 billion to the country, which is a decrease of 13.6% compared to the previous year when remittances were recorded at $31.3 billion.
The foreign exchange reserves held by the State Bank of Pakistan were recorded at $5.34 billion on July 13, 2023,
The Federal Bureau of Revenue achieved a notable increase in revenue collection, with Rs. 7.169 trillion collected during the fiscal year 2023
ISLAMABAD ( Web News )
The Ministry of Finance has stated that despite economic challenges in the past year, there has been a significant reduction in losses in government accounts and commercial trade. During the last fiscal year, a prominent decline of 85% was observed in losses in the government accounts, while there was a remarkable increase in revenue for the Federal Board of Revenue (FBR). This information was disclosed in the monthly economic update issued by the Ministry of Finance.
According to the economic update, the government is taking measures to achieve a 3.5% economic growth in the ongoing fiscal year. To attain this goal, various initiatives are being taken to strengthen the economy and promote growth, with a particular focus on supporting the agriculture sector, assisting industries, and boosting revenues, especially in the IT sector. During the last fiscal year, overseas Pakistanis remitted $27 billion to the country, which is a decrease of 13.6% compared to the previous year when remittances were recorded at $31.3 billion.
The revenue generated during the last fiscal year amounted to $27.9 billion, which is a decrease of 14.1% compared to the previous year’s $32.5 billion. Additionally, the total income recorded during the last fiscal year was $52 billion, showing a decline of 27.3% compared to the previous year’s $71.5 billion. Notably, there was a significant reduction of 85.4% in losses in government accounts during the last fiscal year.
Regarding foreign direct investment, it witnessed a decline of 24.8% as it stood at $1.455 billion during the fiscal year 2023, as opposed to $1.935 billion in the previous year. Overall, foreign investment declined by 77%. The foreign exchange reserves held by the State Bank of Pakistan were recorded at $5.34 billion on July 13, 2023, compared to $5.89 billion on July 12, 2022. The exchange rate was also impacted, as on July 13, 2023, the exchange rate was 277.48 PKR compared to 210.11 PKR on July 13, 2022.
The Federal Bureau of Revenue achieved a notable increase in revenue collection, with Rs. 7.169 trillion collected during the fiscal year 2023, representing a growth of 16.6% compared to Rs. 6.148 trillion collected in the previous year. The non-tax revenue also witnessed substantial growth, with a record increase of 31.3% during the last fiscal year, amounting to Rs. 1.476 trillion compared to Rs. 1.124 trillion in the fiscal year 2022.
Under the Public Sector Development Program, funds amounting to Rs. 512 billion were allocated for various projects during the last fiscal year, slightly less than the Rs. 518 billion allocated in the fiscal year 2022. During the first 11 months of the last fiscal year, there was a primary deficit of Rs. 112 billion, which decreased significantly compared to the same period in the previous year when it was Rs. 945 billion. However, during the fiscal year 2023, the fiscal deficit increased to Rs. 4.652 trillion, a growth of 34.1% compared to Rs. 3.468 trillion in the fiscal year 2022.
In the agricultural sector, loans amounting to Rs. 1.565 trillion were provided during the last fiscal year, a growth of 28.4% compared to Rs. 1.219 trillion provided in the fiscal year 2022. In the private sector, loans amounting to Rs. 25.4 billion were provided during the last fiscal year.
On June 27, 2023, the policy rate was recorded at 22%, which was a significant increase compared to the rate of 15% on July 7, 2022. The national inflation rate for consumers reached 29.4% in June 2023, which was higher than the rate of 21.3% in June 2022. During the fiscal year 2022, the CPI (Consumer Price Index) had increased by 29.2%, compared to 12.2% in the fiscal year 2022.
The manufacturing sector experienced an annual decline of 16.5% from July to May, as per the recorded data. The market capitalization was recorded at Rs. 7.04 trillion during the fiscal year 2022, which increased to Rs. 7.73 trillion during the fiscal year 2023, showing an annual growth of 4.6%. The registration rate of new companies witnessed an annual growth of 4.7% during the last fiscal year.