Putting down the perspective 1.
Slowest growth period in the history of Pak even lower than Sub Saharan region 2. India’s Per Capita growth rate of 6% will double its per capita Income in 12 years & with Pakistan’s 1% per capita growth rate the income of a Pakistani will double in 70 years GDP % Change at Constant Price Pakistan Sub-Saharan Region 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2008 2009 2010 2011 2012(E) 2013(E) PTI Post Budget Press Briefing
Increasing Fiscal Squeeze Current Expenditure
Interest Payments as a % of Development Expenditure Net Federal Revenues 3,000 65% 60% 2,000 55% 1,000 50% 45% - 40% FY09 FY10 FY11 FY12(E) FY09 FY10 FY11 FY12(E) Fiscal Deficit as a % of GDP 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% FY09 FY10 Post Budget Press Briefing PTI FY11 FY12(E)
Meaningless Budget Exercise1. The budget
exercise is meaningless as Govt always misses targets by a wide margin2. The cumulative deficit of the Govt in the last 4 years has been 61% greater than what was budgeted3. This despite the fact that in the last 4 years Govt reduced its development expenditure by PKR 450 Bn v/s what was originally budgeted PTI Post Budget Press Briefing