Connect with us

South Asia

Pakistan’s Progressive Budget To Cut Deficit – U.S. Rating Agency Moody

Published

on

Pakistan’s newly presented mini-budget was regarded as “positive” for the manufacturing and export-oriented sectors. Pakistan’s new budget is expected to intensify the country’s foreign income and control the current account deficit, said U.S. rating agency Moody.

The agency also said that the new budgetary measures undermined the government’s income generation side as tax incentives given to industries and the agriculture sector further toughened the challenge of achieving the tax revenue collection target, and the budget deficit is feared to remain high.

“While the mini-budget will bolster the export sector, there is a greater risk of fiscal slippage and slower fiscal consolidation in the absence of additional revenue-raising measures,” the rating agency added.

Last year in June, the agency lowered Pakistan’s credit rating to “B3 negative” from stable after it found that the country’s foreign currency reserves were inadequate to pay back foreign debt.

The latest analysis suggested that foreign currency reserves were tended to improve, which might lead the credit rating body to consider revising upwards the country’s credit rating going forward.

The Moody’s analysts said that if the new measures were effective, they will help improve Pakistan’s manufacturing sector, fostering export and import substitution, and help narrow the current account deficit. In the absence of new spending cuts or revenue-raising measures, the steps may not be sufficient to cut the country’s budget deficit.

More News at EurAsian Times

Advertisement
Advertisement

Facebook

FEATURED

israel-palestine israel-palestine
Featured7 hours ago

Why Soviet Russia At Its Prime & Host Of Arab Nations Could Never Overpower A Tiny Israel?

Israel may be a small country but it fields one of the most capable military forces in the world. It...

saudi-uae saudi-uae
Featured13 hours ago

Pakistan Claims ‘Big Victory’ Over India After Saudi, UAE Led OIC Adopts Surprise Resolution On Kashmir

Amid the reports that the Organisation of Islamic Cooperation (OIC) meeting in Niger was abandoning the Kashmir issue, the foreign...

LCH-1 LCH-1
Featured15 hours ago

HAL Developed World’s Lightest Attack Helicopter A Stepping Stone For Indian Pilots Towards Apache Choppers

As India looks to induct its indigenous Light Combat Helicopter (LCH) into its armed forces, Indian Air Force (IAF) chief,...

DRONES-TURKEY DRONES-TURKEY
Featured15 hours ago

Pakistan Buying Mini Drones From Turkey To Bolster Its Border Offensive Against India – Reports

To enhance surveillance on the border and fast-track weapons dispatches on the Indian side of Kashmir, Pakistan is roping in...

Apache-Helicopter Apache-Helicopter
Featured15 hours ago

As British Army Goes For A Massive Overhaul It Receives First Two AH-64E Guardian Gunships Helicopters

The British Army has just received its first AH-64E Apache ‘Guardian’ helicopter gunships and would start the replacement of the...

Armata-Tank Armata-Tank
EurAsian Region19 hours ago

Russian Media Claims Its T-14 Armata Tanks Are Capable Of Operating On Mars With New Engines

Russia’s T-14 Armata main battle tanks will be able to operate in temperatures as low as -50 degrees Celsius with...

F18-India-Deal F18-India-Deal
Asia Pacific21 hours ago

Doors Open For More Rafale Fighter Jets, F-18 Super Hornets After Another MiG-29 Goes Down

Thursday’s crash of the Indian Navy’s MiG-29K trainer aircraft in the Arabian Sea has once again revived the debate whether...

INDIA-CHINA INDIA-CHINA
Asia Pacific21 hours ago

Xi’s China Eradicates Absolute Poverty; Where Does Modi’s India Stand?

Amid the Covid-19 pandemic, China has reportedly achieved its long-standing goal of ending absolute poverty. However, there have been no...

Iranian-Islamic-Revolutionary-Guards Iranian-Islamic-Revolutionary-Guards
Featured21 hours ago

Israel-Iran War: Why Israel & US Are ‘Keenly Awaiting’ Iran’s Retaliation After Top Nuclear Scientist Assassinated?

Iranian President Hassan Rouhani directly accused Israel of assassinating Mohsen Fakhrizadeh, the Islamic country’s prominent nuclear scientist. He, however, added...

Russia-China Russia-China
Featured1 day ago

Are Russia & China Taking A Lead From NATO & Working To Develop A Joint Nuclear Powered Aircraft Carrier?

China and Russia’s common adversary, the US, has brought the two powers together and have cooperated by carrying out joint...

Advertisement
Advertisement