KPMG in Pakistan presents highlights of the country’s 2017 budget bill, including an overview of Pakistan’s economy and a round-up of important tax changes.
Key economic statistics presented in the budget bill for the fiscal year 2016-17 are as follows:
Dark clouds continue to gather on the economic horizon, however. The current account deficit reached an alarming USD7.25 billion, primarily due to an increasing trade deficit and declining workers remittances:
As a result, Pakistan’s total external debt and liabilities stood at USD75.7 billion at 31 March 2017. Moody’s predicts that by June 2017, external debt might reach to USD79 billion.
The government’s focus on infrastructure, including the China-Pakistan Economic Corridor, has largely contributed to positive perceptions across the country and arguably remains the primary contributor in the GDP growth – but a cost. Pakistan’s total debt and liabilities stand at a record PKR23.9 trillion at the end of March 2017.
Key tax changes announced in Pakistan’s 2017 budget bill are as follows:
For details on these and other changes in the budget bill, read the report from KPMG in Pakistan.