Page 95 - CMA Journal (Mar-Apr 2025)

O THER F EATURES

Economy News

Budget Deficit Rs2.97 trillion; 12.18%), and readymade garments (up 17.52%), along
with gains in towels, tents, synthetic textiles, and
Provinces Surplus Rs1.05 trillion
made-up articles. However, exports of raw cotton, cotton
Pakistan’s budget deficit reached Rs2.97 trillion (2.4% of yarn, and carded or combed cotton saw sharp declines.
GDP) in Jul-Mar FY2025, with total revenue at Rs13.37 On a year-on-year basis, textile exports in Apr 2025 fell by
trillion and expenditure at Rs16.34 trillion, the Finance 1.35%, while month-on-month, they declined by 14.64%
Division reported. The primary balance showed a surplus compared to Mar 2025.
of Rs3.47 trillion (2.8% of GDP). Federal tax collection was
Rs8.45 trillion, with Rs4.10 trillion from non-tax revenue, Current Account Posts $1.88 Billion
including Rs2.5 trillion surplus profit from the State Bank Surplus in Jul-Apr FY2025
of Pakistan. Interest payments totaled Rs6.44 trillion.
Meanwhile, all four provincial governments posted a Pakistan posted a current account surplus of $1.88 billion
combined surplus of Rs1.05 trillion, with revenues of during Jul-Apr FY2025, compared to a deficit of $1.34
Rs6.39 trillion against expenditures of Rs5.34 trillion billion in the same period last year, according to the State
during the same period. Bank of Pakistan (SBP). The surplus was driven by strong
workers’ remittances of $31.21 billion and secondary
Government Launches Pakistan’s First income inflows of $32.85 billion. However, the overall
trade deficit in goods and services widened to $23.84
Green Sukuk
billion from $20.38 billion. In April 2025, the current
account surplus fell to $12 million from $1.20 billion in
The Government of Pakistan has introduced its first Green
March and $315 million in April 2024.
Sukuk, a financial instrument designed to fund
environmentally sustainable projects. The initial issuance,
between Rs20 billion and Rs30 billion, will be auctioned Remittances Up 30.9% to $31.2bn in
and listed on the Pakistan Stock Exchange. Supported by Jul-Apr FY2025
major banks, this move aligns with Pakistan’s Vision 2028
for a sustainable, interest-free economy. The Green Sukuk Workers’ remittances rose by 30.9% to $31.2 billion in
aims to attract investors, deepen financial markets, and Jul-Apr FY2025 from $23.9 billion in the same period last
boost green economic growth nationwide. year, according to the State Bank of Pakistan (SBP). In
April 2025 alone, inflows stood at $3.2 billion—up
SBP Receives 2nd IMF Tranche of SDR 13.1% year-on-year—mainly from Saudi Arabia ($725.4
million), UAE ($657.6 million), UK ($535.3 million), and
760 million Under EFF
USA ($302.4 million).
The IMF Executive Board completed its first review of
Pakistan’s Extended Fund Facility (EFF) on May 9, 2025, FBR Collects Rs9.3 trillion in Jul–Apr
approving a disbursement of SDR 760 million (US$ FY2025
1,023 million). The State Bank of Pakistan (SBP) received
this amount on May 13, 2025, which will be reflected in The Federal Board of Revenue (FBR) collected Rs9.3
the foreign exchange reserves for the week ending May trillion in taxes during Jul–Apr FY2025, leaving a gap of
16, 2025. Rs3 trillion to meet the revised annual target of Rs12.334
trillion. In April 2025, FBR provisionally collected Rs845
Textile Exports Rise 8.41% in Jul-Apr FY2025 billion, falling short of the monthly target of Rs963 billion
by Rs118 billion. Despite issuing Rs43 billion in refunds,
Pakistan’s textile exports increased by 8.41% to $14.83 tax collection growth remained strong: income tax rose
billion during Jul-Apr FY2025, compared to $13.68 billion by 44 percent, sales tax by 17 percent, and Federal Excise
in the same period last year, according to the Pakistan Duty by 31 percent. The government had earlier revised
Bureau of Statistics (PBS). The growth was mainly driven the full-year target downward from Rs12.913 trillion to
by higher exports of knitwear (up 15.47%), bedwear (up Rs12.334 trillion.

ICMA’s Chartered Management Accountant, Mar-Apr 2025 93