2025 – A year of more challenges
The year 2025 starts with many carry-forward challenges from last year’s and further add to new challenges in the years ahead. The plight of the poor of the country has…
Fiscal crisis and reset
Pakistan’s fiscal system has long been under immense strain due to the mounting pressure of borrowing and the substantial portion of revenue being diverted towards debt servicing, and 2024 was…
This year’s economic scorecard
The year 2024 represents a critical juncture for Pakistan’s economy, characterised by a confluence of significant challenges and emerging opportunities. Throughout this period, Pakistan encountered a range of obstacles arising…
Budgetary system & fiscal governance
Pakistan’s budget process, while clearly defined in the 1973 Constitution, subordinate legislations like the Public Financial Management Act (PFMA), 2019 and guided by detailed manuals e.g. Budget Manual 2020, suffers…
Fiscal outcome in first quarter
The first quarter of 2024-25 has closed with an unusual and extremely positive outcome. There is actually a budgetary surplus of Rs1,537 billion. This is attributable to the receipt of…
The national fiscal pact
A new important piece in the legal domain of Pakistan’s public finance management system is the National Fiscal Pact (NFP), which reportedly all four provinces have now signed onto. The…
Tax burdens and fiscal discipline
After an inflation-ridden Fiscal Year 2023-24 (“FY24”), wherein the average inflation for the FY24 was 23.4%, there was some hope that the budget for the FY25 may bring respite to…
Fixing fiscal imbalances
Though Pakistan’s fiscal imbalances have been persisting since its inception, yet no serious efforts are yet in the offing to remedy the situation and remove the causes, inbuilt in the…
Budget FY25: Test of fiscal discipline
Walking a tightrope to balance income against expenditure without hurting the people and losing political capital has always remained a challenge for the finance minister of Pakistan who is making…
NFC and fiscal equity
Initiated by the centre and fiercely contested by the provinces, the reallocation of the NFC comes under debate each time the annual budget is due or when a new federal…
