ECONOMY OF PAKISTAN

26th largest in the world in terms of purchasing

power.
41th largest in terms of nominal Gross
Domestic Product
With population of over 190 million
A nominal GDP per capita of $4,993
5.3% budget deficit every year which equal to
Rs1.45 trillion in the fiscal year 2015
Foreign remittance is up to 18 billion dollar
Facing a lot of challenges to compete with
international market competitors

GOVERNMENT BUDGET

A document presenting the government proposed

revenues and spendings for a financial year.

Budget deficit

The government budget balance is the overall

difference between government revenues and
spending. A positive balance is called budget
surplus, and a negative balance called budget
deficit.

Need to overview government

budget
To get an idea of the:

Financial performance of the government over the past one

year.
To know about the financial programs & policies of the
government for the next one year.
To know how their standard of living will be affected by the
financial policies of the government in the next one year.

PAKISTAN BUDGET DEFICIT

5.3% budget deficit every year which equal to Rs1.45
trillion in the fiscal year 2015
Pakistan given up to 60% of the GDP in the interest of
debt every year
budget deficit might increase by 0.3 percent of GDP to
4.6 from 4.3 percent for the ongoing fiscal year 201516.
Only 1949 was the year when our economy
surplus till that we are at deficit
The IMF assessed that the Public Sector Development
Programe (PSDP) at the federal level was expected to
be slashed down from Rs663 billion to Rs636 billion in
order to achieve the desired budget deficit target.

PAKISTAN TOTAL EXTERNAL

DEBT
State Bank of Pakistan reported that

External Debt of Pakistan is $66457 Million USD in the

third quarter of financial year 2015
External Debt in Pakistan averaged 49821 million USD
from 2002 until 2015
Which shown by the graph:

SPENDING POLICY CHANGES FOR

ADDRESSING DEFICIT
Cut Spending
Increase Taxes
Control Government Spending
Bailout
Economic Growth
Default
Issuance of Bonds
Interest Rate Manipulation
Control budget deficit
Tight Monitoring Policy

CUT SPENDING

To minimize the Spending and to overview over budget and

unnecessary projects.
The government can cut its public spending to reduce its
fiscal deficit. For example, in the 1990s, Canada reduced its
public spending quite significantly. They evaluated and cut
their spending by up to 20% within four years across the
board. This proved a successful policy in reducing the
budget deficit.
The budgetary policy to be presented in two parts

a.
b.

Ordinary government expenditures and revenue

Development expenditures

PAKISTAN GOVERNMENT
SPENDING

INCREASE TAXES
Tax is the first source of revenue to the
government.
Tax have of the two types
Direct tax:
Deducted from entrepreneurial and
corporate income
Indirect tax:
Imposed on economic activities of
production, consumption and distribution.

PAKISTAN TAX REVENUE

The FBR collection for the fiscal year posted above 14 percent growth
to Rs2,588 billion from Rs2266 billion.
Total tax revenue comprising all sources was Rs2,811 billion, showing
a growth of 18.35 percent when compared with Rs2,375 billion of
preceding fiscal year. Total revenue to the GDP increased to 14.4
percent from 14.3 percent.
As per finance ministry website, the snapshot of fiscal year 2014/2015
is as:
Budget deficit: 5.3 percent
Tax Revenue: Rs. 3931 billion
Non-tax revenue: Rs913 billion
Total expenditure: Rs5,387 billion
Current Expenditure: Rs4,424 billion
Development Expenditure and Net Lending: Rs1,140 billion
The tax-to-GDP ratio on the basis revenue collected by Federal
Board of Revenue (FBR) has increased to 9.45 percent in fiscal
year 2014/2015 as compared with 8.92 percent in 2013/2014,

PAKISTAN TAX REVENUE

Higher taxes increase revenue and help to reduce
the budget deficit.
While increasing tax the time to be noted
In a recession, tax increases cause a big drop in
economy which lead to a fall in economic growth
During high growth, tax increase is not harm
spending as much.
It also depends on the type of tax you increase

FBR TAX REVENUE

Bailout
For financing the budget deficit the government
can borrow
Internally(Domestically) from
State bank
Commercial banks
Financial institutions
Through public borrowing etc.
Externally(internationally)
From other countries
From international organizations such as
IMF,ADB or world bank etc.

PAKISTAN TOTAL DEBT

As reported by tribune news on June 2015
the total debt liabilities of the country stood at
Rs19,300 billion.
Which means every Pakistani now owes a debt of
about Rs101,338
The debt-to-gross domestic product (GDP) ratio
stands at 66.4%, in which foreign debt is Rs6.4
trillion and domestic debt is Rs12 trillion
The total external debt is almost 50% of the
current reserves of the State Bank of Pakistan.

ECONOMIC GROWTH
High economic growth is the least painful way to
reduce the budget deficit because you dont need to
raise tax rates or cut spending.
The World Bank projected Pakistans economic
growth to accelerate to 4.5% in FY 2016 and then
further to 4.8% in FY 2017 supported by strong
growth in industry and services.
To reduce the budget deficit is to promote economic
growth. If the economy grows, then the government
will increase tax revenue, without raising taxes.
With economic growth, companies pay more
corporation tax (tax on profits), and workers
paymore income tax.

ISSUANCE OF BONDS
Government often issue bonds to get money owed

This enables them to avoid raising taxes and provides

money to stimulate the economy by public spending
When the economy suffering from high levels of
unemployment, governments can stimulate the economy
by buying the bonds they have issued themselves
For example, the state bank implemented quantitative
strategy in November 2008 to buy large amounts of
government securities and other financial securities to
spur economic growth and aid recovery from the financial
crisis in 2007-2008
but keeps in mind that the government must pay interest
to its creditors and at some point the borrowed money
must be repaid

REVENUE
GENERATION
STRATEGIES

REVENUE GENERATION
STRATEGIES
FOR ADDRESSING THE
DEFICIT:
Strategy 1: Generating Economic Growth through
accelerating Industrialization process
Strategy 2: Creating Employment Opportunities through
encouraging SME Development
Strategy 3: Stimulating Investment through promoting
Savings and Capital Formation

Strategy 4: Give the technical skills and education to

the workers to increase foreign remittances
Strategy 5: By promoting the local organization to
export the products and increase the country total
export and minimize the import.
Strategy 6 :Reduce debt service liability by
refinancing the public debt

PUBLIC WELFARE PROJECT

IMMUNIZATION

IMMUNIZATION
The process whereby a person is made immune
or resistant to an infectious disease, typically by
the administration of a vaccine
Vaccines stimulate the body's own immune
(defense) system to protect the person against
subsequent infection

HISTORY OF IMMUNIZATION
In 1974, EPI was initiated by the World Health
Organization (WHO)
when less than 5% of the world's children were
immunized during their first year
The program was started on six diseases
(Diphtheria, Tetanus, Pertussis, Polio, Measles,
and Tuberculosis),later In 1988 Hepatitis B was
added
WHO passed the resolution of global polio
eradication by 2000
The number of polio cases worldwide has decreased
from 350,000 in 1988, to 273 cases by May 25, 2010

Immunization in Pakistan
Program on Immunization was started in
Pakistan in 1978 with the ultimate objective of
reduction in morbidity and mortality caused by
six vaccine preventable diseases
Pakistan is among the few countries where Polio
has yet to be eradicated completely

WHAT IS POLIO VACCINE?

Polio affects the central nervous system and spinal cord.
It can cause muscle weakness and paralysis. Polio is a
life threatening condition because it can paralyze the
muscles that help you breathe.
The polio vaccine is used to help prevent these diseases
in children and adults.
This vaccine works by exposing you to a small dose of the
virus, which causes the body to develop immunity to the
disease. This vaccine will not treat an active infection
that has already developed in the body.
Polio vaccine is for use in adults and children who are at
least 6 weeks old.
Like any vaccine, the polio vaccine may not provide
protection from disease in every person.

Polio vaccine is recommended for all children

It is also recommended for adults in the following
situations:
people who have never been vaccinated against
polio;
people who travel to areas where polio is
common;
people who handle polio virus in a laboratory or
other setting; or
people who treat patients who have polio.
Becoming infected with poliovirus is much more
dangerous to your health than receiving the
vaccine to protect against it

FINANCE OF POLIO PROGRAM IN

PAKISTAN
Apart from Government of Pakistan, a number of
donor agencies are providing assistance, both
technical and financial to Public Health
Programmers such as EPI.
The main partners in EPI are; WHO, UNICEF,
JICA, World Bank, CDC, Rotary International,
USAID, GAVI, the Bill and Melinda Gates
Foundation and DFID