Pakistan Federal Budget 2012-13


Sr. # Federal Budget 2012-13 Title Download
1
Federal Budget Details of Demands for
Grants and Appropriations 2012-13 Current Expenditure
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2
Federal Budget Details of Demands for
Grants and Appropriations 2012-13 Development Expenditure
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3
Demands for Grants And Appropriations 2012-13 (White Book)
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4
Federal Medium Term Budget Estimates for Service Delivery 2012-15
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5
Explanatory Memorandum on Federal Receipts 2012-13
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6
Estimates of Foreign Assistance 2012-13
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7
Budget in Brief 2012-13
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8
Annual Budget Statement 2012-13
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9
Federal Budget Speech 2012-2013 (English Version)
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10
Federal Budget Speech 2012-2013 (Urdu Version)
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The NFC recommended that the Federal Government and Provincial Governments should streamline their tax collection systems to reduce leakages and increase their revenues through efforts to improve taxation in order to achieve a 15% tax to GDP ratio by the terminal year i.e. 2014-15. Provinces would initiate steps to effectively tax the agriculture and real estate sectors. Federal Government and Provincial Governments may take necessary administrative and legislative steps accordingly.


Prices

A key objective of economic policy is to maintain price stability. Inflation is affected by the international oil and commodity prices, seasonality and shortages in agriculture produce and government expenditures financed through printing of money. In our country, much of the inflation is either because of international prices and supply shocks.

The explosive inflation nearly 25% in late 2008 is now firmly behind us. There is gradual decline in the rate of inflation during the last four years. This year it has been brought down to 11% and we are targeting single digit inflation for the next fiscal year. In fact, there has been a decline in inflation for three years in a row. Due to our austerity last year, we froze nominal expenditure of government in the current year the running of the civilian government is 10% less than last year.


Agriculture

Agriculture Sector is the backbone of Pakistan economy. Despite two consecutive floods, the sector has rendered outstanding performance in the last two years. This year, in particular, agriculture sector has given more production in all the major Khareef crops, namely rice, cotton and sugarcane, which have recorded unprecedentedly good production.

For the agriculture sector, we have spent this year nearly Rs.50 billion in subsides on fertilizer when local production was not possible due to gas shortages. We have also helped sugar growers by procuring sugar from domestic sources. This has enabled sugar mills to make timely payments to sugar growers. As a result of our policies, Pakistan is now exporting wheat and sugar.


Industry

After sluggish performance in recent years, industrial sector has begun to record positive growth. Industry will grow by 3.4% compared to 3.1% last year. However, this is still below its potential as excess capacity remains in the industrial sector which will pick up as the economy gains further pace. This growth has been registered despite shortages of electricity and gas. Prominent sub-sectors where growth has been registered are sugar, cement, automobiles, textiles and chemicals. The government has given incentives to industry, opened regional and international markets and provided facilitation.


Imports, exports and balance of payments

Pakistan has experienced phenomenal performance in exports in the last two years. Last year, exports increased by 28%, crossing the $25 billion mark. This year, in spite of global downturn, we will be able to maintain this high level of exports.

Our imports are likely to rise 15% this year, primarily due to higher oil prices. We had to import about 1.2 million tons of urea at a price of more than $500 dollar per ton, costing a large sum of nearly $700 million. This was imperative to save our agriculture sector which otherwise would have suffered immensely because of less domestic production.

We have still not received nearly $1.2 billion in Coalition Support Fund, which had an effect both on our external receipts as well as on the budget.