Mohsin Ali Khan Public Policy

The present fiscal year had brought many challenges for the current government that was on the
path of economic stability. With the growing COVID patients, government is not facing huge
challenge in health sector as well as economic, social and education sectors are also badly
affected. According to the budget report, this pandemic had halted the economic progress of
federal as well as provincial governments in achieving their objectives. The budget report in the
presence of this disease shows effective management of the government and losses are not of
high magnitude.
Many adjustments had been made to stabilize the economy and to provide assistance to the
marginalized groups. Improvement in cash transfer programs like “Ehsaas Program”, “Youth
Program” are being monitored effectively to ensure the income equality. Secondly government
had reduced its expenditures to the extents where possible had provided support to this year
budget. Moreover, reduce in current account deficit from 10% to 3%, trade deficit from 21
billion dollars to 15 billion dollar, and reduce in fiscal deficit, remittances increase to 17 billion
dollars, FBR revenue increased by 17% and the government was on track to achieve the revised
target of Rs 4,800 billion, Non tax revenue increased by 134 % against the a nnual target of Rs
1,161billion, Foreign direct investment almost doubled from $ 0.9 billion to $ 2.15 billion and
many more achievements have been made by the current government to achieve economic
stability and growth.
The economic impacts of Coved 19 for Pakistan during FY 2019-20 had affected the Industry
and the retail businesses all over Pakistan. Secondly the Economic growth has been reduced by
Rs 3 trillion which brought down GDP growth projection from 3.3% to -0.4%, FBR revenue loss
has been projected at Rs 900 billion, on tax revenue of the federal government has been reduced
by Rs 102 billion, Exports and remittances have been badly affected and Domestic tourism in
Pakistan has badly affected.

Besides these pitfalls government has made policies to counter negative impacts of this
pandemic on the economy and adjusted other austerity measures in the budget. The main
objectives mentioned in the budget report are to maintain balance at sustainable level, corona
expenditure and fiscal deficit had to be balanced, poor segments of society to be assisted through
“Ehsaas Program”, no changes in tax structure, bringing onward of Stimulus Package, keeping
development budget at sufficient level to stimulate economic growth, defense of the country has
been given due importance, funding for special areas, the special initiatives led by the Prime
Minister like Kamyab Juwan, Sehat Card, Billion tree Tsunami have also been protected, subsidy
system will be efficient to provide targeted subsidy to the deserving segments of the society.

The allocation of resources among departments is adequate but main objective is the optimum
utilization of these resources. Many PSDP projects failed due to weak implementation and
accountability. Every department had to be transparent but in case of public sector the
Mohsin Ali Khan Public Policy

departments had transparency of high degree creating a room for corruption and futile utilization
of resources.
Departments like National Disaster Management Authority and ERRA have given huge budget
yet their performance is not efficient in bringing rehabilitation to the effected community. Also
departments like these NDMA, ERRA, PSO, WAPDA, PIA and SPARCCO need to be
monitored creditably because their reputation is not up to the mark in previous years and many
money laundering cases had taken place in these big public sectors.
The efforts taken by the government to document the taxes is significant because it would help in
minimizing misuse of resources and on the other hand more tax generation creates economic and
social stability.