Tag: Government Finances

  • Govt surpasses petroleum levy collection targets despite declining sales

    Govt surpasses petroleum levy collection targets despite declining sales

    In the first six months of fiscal year 2023–24, the federal government has exceeded expectations by collecting Rs472.77 billion in petroleum levy (PL), constituting an impressive 54 per cent of the total budgetary estimates for PL on petroleum products for the current fiscal year.

    This collection marks a significant uptick, registering a remarkable 166 per cent increase compared to the same period in the previous fiscal year. The government achieved a substantial PL collection of Rs222 billion in the initial three months of the current fiscal year.

    Originally budgeted at Rs869 billion for PL collection in the fiscal year 2023–24, the government revised its target to Rs918 billion following an increase in PL from Rs50 to Rs60 per litre on petrol and high-speed diesel (HSD). This adjustment aligns with the government’s commitment to the International Monetary Fund (IMF).

    However, against this backdrop of successful revenue generation, the country witnessed a notable 15 per cent decline in the sales of petroleum products in the first six months of the current financial year.

    According to the Oil Companies Advisory Council (OCAC), petroleum product sales dropped to 7.68 million tonnes, a considerable decrease from the 9.03 million tonnes recorded during the same period in the previous fiscal year (July to December).

  • Pakistan’s debt burden increases by Rs86.28 billion within seven days

    Pakistan’s debt burden increases by Rs86.28 billion within seven days

    In the week ending January 12, the government of Pakistan increased its debt burden by Rs86.28 billion, bringing the total net borrowing for the ongoing fiscal year 2024 to Rs2.57 trillion, as per the latest estimates from the State Bank of Pakistan (SBP).

    The government’s borrowings fall into three main categories: budgetary support, commodity operations, and others.

    The breakdown of the weekly net borrowing reveals that Rs87.7 billion was allocated for budgetary support, while Rs1.37 billion went towards retiring commodity operations.

    Additionally, Rs48.4 million was used for other purposes during the week.

    Cumulatively, this brings the borrowing figures for the fiscal year 2024 to Rs2.77 trillion for budgetary support, Rs193.72 billion for retiring commodity operations, and Rs1.1 billion for other purposes.

    The primary sources of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. In the ongoing fiscal year, the government has repaid a net sum of Rs1.05 trillion to the central bank.

    The Federal Government accounted for Rs954.56 billion of this repayment, while the Provincial Government, AJK Government, and GB Government contributed Rs77.73 billion, Rs11.17 billion, and Rs2.05 billion, respectively.

    On the other hand, scheduled banks have extended a net total of Rs3.81 trillion in loans. The Federal Government borrowed Rs3.9 trillion, while the Provincial Government repaid Rs90.41 billion during this period.

  • FBR exceeds revenue target by Rs63 billion for first three months of current fiscal year 

    FBR exceeds revenue target by Rs63 billion for first three months of current fiscal year 

    In the initial quarter of the ongoing fiscal year, the Federal Board of Revenue (FBR) successfully amassed a total of Rs2,041 billion, significantly surpassing the stipulated target of Rs1,978 billion by an impressive margin of Rs63 billion. 

    Furthermore, the FBR exhibited commendable dedication and diligence in pursuit of its revenue goals for the month of September 2023. Despite setting a target of Rs794 billion, the FBR managed to accumulate a noteworthy sum of Rs834 billion, as opposed to the Rs688 billion collected during the corresponding period in 2022. 

    Additionally, the FBR issued refunds totaling Rs37 billion, a notable increase compared to the Rs18 billion issued in September 2022. 

    Nonetheless, it is important to note a considerable reduction in import activities during September 2023, with taxes collected at the import stage amounting to Rs254 billion, down from the previous month’s figure of Rs299 billion. According to ARY News, this deficit of Rs45 billion was effectively compensated for through the collection of domestic taxes, particularly direct taxes.