In the beginning of the year 2020, Pakistan's economic indicators began to improve after the decline, but due to the global epidemic Corona lockdown gripped the world economy, it also had a negative impact on Pakistan's economy. As a result, Pakistan's GDP fell to minus 0.38.
The last negative growth in Pakistan's economy was seen in the financial year 1951-52. The country's economy is recovering due to the federal government's decision to ease the lockdown. According to a report by the State Bank of Pakistan, the country's foreign exchange reserves have increased by 1. 1.426 billion in the current financial year. According to the data, at the end of June 2020, the country's total foreign exchange reserves stood at 18 18.88 billion, of which SBP had 12 12.13 billion and private banks had 6 6 billion. It was کروڑ 750 million. However, as of December 18, 2020, according to SBP data, the SBP has reserves of ارب 13.21 billion while other banks have foreign exchange reserves of 7 7.9 billion.
Similarly, according to the data released by the SBP, remittances increased during July-November of the current financial year 2021, which is 27% higher than the same period last year. According to the SBP, the current fiscal year 2021 has seen an improvement in the current fiscal year as compared to the previous five years, while the account is moving towards account surplus due to steady increase in remittances.
According to data released by the SBP, Pakistan's current account surplus for the fifth consecutive month has reached 44 447 million, compared to a current account deficit of کروڑ 326 million in the same period last fiscal. In addition, the total current account surplus increased to 64 1.64 billion during July-November of the current fiscal year from جبکہ 1.745 billion in the same period last fiscal. To enable the recovery of the economy affected by the Corona lockdown, Prime Minister Imran Khan announced a construction package in April 2020, easing the lockdown, which led to an improvement in the economy and a sharp rise in the circulation of the rupee in the country. According to the PTI government's package, the holding tax was waived and only the holding tax in steel and cement was maintained while the tax on other items in the construction sector was waived. In addition, under the new policy, banks will be required to provide 5% of private loans to the construction sector.
With this, banks will be able to lend Rs 330 billion annually in the construction sector. According to the report, the federal government has introduced a fixed tax policy in the construction sector under which those who invest in the construction sector will not be asked for sources of income till December 31. To strengthen the economy through housing and construction industry, a subsidy of Rs 30 billion has also been set aside for New Pakistan Housing. A subsidy of Rs 3 lakh was announced for each house. Under the policy, 7 per cent interest will be charged on a 10-marla house and 5 per cent on a five-marla house and people will be able to repay their loan installments easily. The federal government has set a target of collecting Rs 4,900 billion in taxes in the current financial year 2021. According to FBR data, tax revenues in the first five months of the current financial year have increased by 4% compared to the previous financial year. FVR achieved revenue of Rs. 1688 billion during the current financial year July-November 2020 against its target of Rs. 1669 billion. In these five months of the last financial year, revenue of Rs. 1623 billion was collected. Out of which Rs 577 billion was received from income tax, Rs 743 billion from sales tax, Rs 104 billion from federal excise duty and Rs 264 billion from customs duty. In addition, the FBR issued refunds of Rs. 144 crore during July-December 2020 of the current financial year as against Rs. 76 billion during the same period of the previous financial year. The FBR also introduced a one-page tax return for the convenience of small and medium-sized manufacturers. As of December 8, 2020, 1.7 million income tax returns have been filed. In the second week of January 2020, the index crossed the 43,200 level due to a market rally, but the global epidemic Corona froze economic activity around the world, causing the Pakistan Stock Exchange index to reach 27,200 just two months later. However, under the government's policy of easing the lockdown, the market picked up speed again and reached 43,416 in December 2020, which is expected to improve further. In view of the economic slowdown caused by the global epidemic Corona, the SBP has reduced the monetary rate by 725 basis points to 7% this year to keep the market afloat.
