ISLAMABAD (Eshfak Mughal):- The budget deficit was swelled to Rs2.5 trillion due to different slippages including unbudgeted subsidies and debt servicing during the first nine months of the current fiscal year.
Sources in the Ministry of Finance told the scribe that the budget deficit has been surged to Rs2.5 trillion the first nine months of the current fiscal year, according to the provisional estimates.
The budget deficit was recorded at Rs1.652 trillion during the nine months of the last fiscal year almost Rs850 billion less than current fiscal year. Finance Ministry is expected that the budget deficit will touch the highest level of Rs5.5 trillion instead of original estimate of Rs3.9 trillion by end of June 2022, sources further told.
They said that the subsidy on petroleum products and cheaper electricity rates has put pressure on the budget deficit during the current fiscal year. According to the official estimates, Pakistan government is facing Rs70 billion revenue loss monthly basis due to maintain the petroleum prices at current level. Providing cheaper electricity at lower prices by the government is also widening the budget deficit.
The government has borrowed from internal and external resources for bridging the budget deficit during the first nine months of the current fiscal year.
It has borrowed Rs895.6 billion net from local banks through different security papers for budgetary support. During the current fiscal year, the Government not only didn’t take fresh loan but it has retired debt of net Rs104 billion to the State Bank of Pakistan during the nine months of the current fiscal year.
The Government has honored the agreement with IMF for not direct borrowing from State Bank of Pakistan during the period. The PTI government has agreed, through loan program in 2019, with the IMF that it will not direct borrow from State Bank of Pakistan.

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