Pakistan Economy Watch (PEW)

ISLAMABAD: Independent Economists have said that the govenment will not be able to achieve current fiscal year’s revised budget deficit target of 4.7 percent due to resource-constraints.

While talking to Online here on Sunday renowned economist Dr Salaman Shah said that budget deficit was expected to wide further in current fiscal year 2011-12 because of debt repayments and a lack of external assistance.

He said that the government recent decision of postponing the launching of 3G licence will also wide the budget deficit as the launching of 3G licence was expecting to generate Rs.75 billion during on going financial year.

“Keeping in view the depressive economic situation in the country budget deficit may remain in the range of 6 to 7 percent,” Dr Salman Shah said, adding that this is the pre-election year and the government was tending to spend more on the public sector development front ahead of general election.

Executive Director(ED) Sustainable Development Policy Institute (SDPI) Dr Abid Sulari said that to get revised budget deficit target of 4.7 per cent was almost impossible for the government due to slow releases from Coalition Support Fund (CSF) and financial constraints.

While talking to Online President Pakistan Economy Watch (PEW) and economist Dr Murtaza Mughal said that government has needed to take tangible steps to issue Secondary Public Offerings for the state-run oil firms to bridge the fiscal gap.

He said that Pakistan had already started repaying to the International Monetary Fund (IMF) loan last month with a $399 million payment which will also affect the government efforts to keep budget deficit in control.

He further said that noting impossible for the government but it needed political will so in the case with budget deficit if government can take concrete measures budget deficit target may be achieved. – Online