ISLAMABAD: The growth in revenue collection by the Federal Board of Revenue has lowered the fiscal deficit to 2.2 percent of the GDP as compared to 2.5 percent in the last year. Moreover, increased revenue collection has also outpaced the increase in expenditures and led to a broad-based improvement in fiscal indicators. Now if the external challenges are addressed, other fundamentals are strong enough to put it on a sustainably high growth path.
An official source at FBR told Customs Today that revenue growth gained impetus from greater real economic activity, rising imports; both in quantum and value, and higher sales volumes of POL products. Non-tax revenues rose over last year has also led by higher profit for the central bank and a surge in receipts from property and enterprise, civil administration and other miscellaneous receipts.
The source while commenting on performance of economy, said that months’ long consecutive export growth was overshadowed by rising imports. Resultantly, the current account deficit has increased than last year despite higher financial inflows which proved insufficient to offset the rise in the current account deficit.
Consequently, the source said that the current account deficit had brought the liquid reserves under pressure and rupee was depreciated to some five percent. However, the source said that due to increased revenue collection economy had reached a familiar juncture, where balance of payments challenges warrant concerted and timely measures to preserve the macroeconomic stability and growth momentum.