Budget paper foresees five major challenges for FY 2012-2013

Budget paper foresees five major challenges for FY 2012-2013

Islamabad: (Tuesday, April 17, 2012) The budget paper prepared by the ministry of finance has identified five major challenges for the next year’s federal budget.

The biggest one of these challenges, as anticipated, is the country’s poor performance on fiscal front that is to hit even harder in the next financial year.

According to the paper, the biggest challenge Pakistan is to face on economic fronts is the rising oil prices in international market. If the current rise in the oil prices continues, which is likely to happen, the already unbridled
inflation in the country will turn into hyperflation.

Another major challenge that stares into the eyes of the economic managers of the country is the looming energy crisis which is expected to persist unsolved even in the upcoming fiscal year.

It is also highlighted that the financial loses the government is bearing while financing the energy sector is hindering the economic performance of the country. The paper cited that the government had wasted over one trillion
rupees in power sector losses so far, and there seemed no ending to the phenomenon.

Another significant challenge that is expected to take a greater toll on the energies of the economic policy makers is the ever decreasing foreign investment and financial institutions’ denial to bailout an economically faltering
Pakistan.

Still in the cue and equally serious challenges are rampant corruption that has made its way to almost every public sector and the heavy debt servicing that is taking its toll on Pakistani rupee.

Short URL: https://www.newspakistan.pk/?p=19281

Posted by Fayyaz Yaseen on Apr 17 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry