Summary Through better debt management efforts are being made to reduce the debt servicing cost.
ISLAMABAD (Dunya News) – Finance Ministry Wednesday clarified that during the first half of current financial year (2020-21), the Consolidated Primary Balance reflected a Surplus of Rs 337 billion, 0.7 percent of the GDP.
Referring to an article appearing in a section of press, the ministry said, the overall Fiscal Balance was restricted to -2.5pc of the GDP against the annual target of 7.1pc.
The provincial surplus of Rs 255 billion reflects healthy fiscal position of the provinces, it said adding the whole scenario transpires better fiscal management.
During the same period, 45pc of FBR revenue target fixed for the whole year was realized, despite economic slowdown due to resurgence of COVID-19.
Unavoidable expenditures were incurred to mitigate the impact of COVID-19 and to help the vulnerable segments of society.
However, debt servicing of huge domestic and external loans accumulated over the past one decade is the major fiscal challenge.
Through better debt management efforts are being made to reduce the debt servicing cost.
With more revenue collection and controlled expenditures, the targets set for the whole financial year with regard to fiscal and primary balances would be met, it added
