Costly priorities

Article Abstract:

Pakistan expects a budget deficit of Rs 15 billion (US$602 million), far above the forecast of Rs 6.5 billion for fiscal year ending Jun 30, 1992. This is blamed on huge defence spending and debt servicing coupled with very poor trade performance. Consequently, the IMF-imposed deficit target of 4.8% of Gross Domestic Product will not be met. To balance the budget for the next fiscal year, the government is banking on World Bank and IMF loans totalling US$2.9 billion, revenues from expected record cotton exports and remittances from 200,000 workers that it hopes to export in 1992.

Management, Budget deficits

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Black mark for Islamabad

Article Abstract:

Pakistan's high rate of government spending has served to influence the International Monetary Fund (IMF) to postpone extension of a $1 billion loan package. An IMF team had previously asked Pakistan to resubmit economic data, fueling speculations of the institution's fears of economic mismanagement. This is reinforced by an Asian Development Bank report showing high defense spending. Unplanned expenditures are making Pakistan dependent on the IMF and World Bank for its foreign exchange needs for servicing short-term debts.

Economic aspects, Government spending policy

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Mercantile message: Pakistan encourages imports to boost exports

Article Abstract:

Pakistan has been hounded by a trade deficit which threatens to increase. The government has adopted a double-pronged approach to solve the problem. It has removed certain constraints to the importation of capital goods and raw materials necessary to the manufacture of exportable products. Non-traditional exports are being given a push to increase the country's total exports by 15% in FY 1992-93 over the previous period.

International trade

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