Pakistan’s Finance Minister Abdul Hafeez Shaikh presented the Financial Budget 2011-12 in the National Assembly for approval.
Pakistan will aim to contain its fiscal deficit to 4 percent of gross domestic product in its budget for the 2011/12 fiscal year to be announced later on Friday, officials said, as the country tries to revive an economy hit by floods and militancy.
The IMF has said that Pakistan needs to improve debt management and broaden its tax base after talks on its $11.3 billion loan program to help Islamabad deal with financial challenges. The IMF also urged an increase in government spending on health, education, and infrastructure, and stronger monitoring of the financial sector to ensure stability.
Pakistan had already been struggling since 2008 to keep its economy afloat with an $11 billion International Monetary Fund (IMF) loan, when the devastating floods last year inflicted another $10 billion in losses on the economy. Pakistani stocks ended higher on Friday ahead of the budget announcement and amid expectations of an expected removal of a capital gains tax on individual investors.
Source: demotix.com
