The Pakistan government pledged to cut its fiscal deficit to 4.7 percent of gross domestic product in the year ending June 2013.
Nonetheless, Finance Minister Abdul Hafeez Shaikh in his budget speech on Friday announced reduction in taxes. Also, he raised government salaries and pension by 20 percent.
The government intends to phase out Federal Excise Duty in the next two years, he said. Excise duties were eliminated on 10 items. Further, the minimum tax on business turnover was lowered to 0.5 percent from 1 percent.
The ministry estimates 3.7 percent expansion in 2011-12 and targets 4.3 percent economic growth for the coming fiscal year.
The government expects overall Tax-GDP Ratio to improve to 10.3 percent in the current fiscal year from 9.6 percent in 2010-11.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.