Govt utters cautious optimism amid mixed economic performance |
• Expenditures swell 11.9pc against revenue growth of 11.4pc in July-October
• Public debt records first quarterly decline of Rs1.371tr in five years
• Key crops cotton, rice see production fall; sugarcane and chillies rise
ISLAMABAD: With a 256 per cent surge in current account deficit, the government on Friday expressed cautious optimism over the country’s economic outlook with stubborn inflation in 5-6pc range due to pressure on food prices and agriculture production.
In its economic update and outlook for November, the Ministry of Finance (MoF) said the industrial activity continued to strengthen amid implementation of reforms.
However, all major fiscal indicators — FBR collection, non-tax revenue, budget surplus and primary surplus — were down as percentage of GDP. The report showed the tax-to-GDP ratio was slightly lower at 2.96pc in first four months of 2025-26 when compared to 3pc last year. Non-tax revenues were also reported at 2.32pc of GDP against 2.63pc in comparable period.
Fiscal surplus was also down this year at 1.63pc of GDP against 1.65pc last year while primary surplus was reported at 2.7pc this year when compared to 2.8pc last year.
The ministry........