Pak budget focuses on CPEC, employment, poverty reduction

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Islamabad, June 12 | Pakistan’s budget for the next fiscal year (July 2021-June 2022) focuses on the China-Pakistan Economic Corridor (CPEC) and sustainable development goals (SDGs) for economic development, creation of employment opportunities and poverty alleviation.

Finance Minister Shaukat Tarin, who presented the budget in the National Assembly (NA) on Friday, said that the government will focus on the CPEC projects, including the Gwadar port and special economic zones (SEZs) to create jobs and push the growth wheel, reports Xinhua news agency.

Further tax relaxations will be given to investors interested in the SEZs under the CPEC, the Minister added.

Tarin said that the government has proposed 9.3 billion PKR ($59 million) for the development of the CPEC railway project Main Line-1 to improve the North-South communication.

He proposed a total budget of 8,487 billion PKR for the financial year starting July 1, 2021 with a fiscal deficit of around 6.3 per cent of GDP, including 2,135 billion PKR for the public sector development program, increasing the funds by 37 per cent against the current year’s development allocations.

The Minister added that the country would manage to get 1,246 billion PKR from foreign lenders and 2,417 billion PKR from locals while the government will also spend 3,060 billion PKR for interest payments.

According to the proposed budget, Pakistan’s defence service budget in the next fiscal year will be 1,370 billion PKR, 16 per cent of the total budget, a drop from the 18 per cent allocation in the previous budget.

The government has also allocated a budget of $1.1 billion to purchase Covid-19 vaccines to meet the target of inoculating 100 million people by June 2022.

Tarin said that the government has allocated special funds for hydropower projects, anti-carbon emission projects, tourism, special technology zones, public housing loans, agriculture development and power distribution.

Starting from June 14, the NA will start a debate on the proposed budget for the next 10 working days, after which it is likely to conduct voting to approve the budget on June 28.

Following the approval, the budget will be presented before the Senate or the upper house.

Source: IANS

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Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered sharply on the last trading day amid the weekend after a continuous fall. Market has managed to halt above 16000 Nifty levels after continuous losing streak. Index reacted violently, grasping Indian as well as global factors throughout the week. Simultaneously, Inflation is catching up and profit margins are taking a hit.

 

Sensex advanced 1532 points or 2.90 percent while Nifty gained 484 points or 3.07 percent in a week. Simultaneously, Bank nifty has overcome bear’s dominance ending the session with 3.49 percent gain. Sectorally,Nifty Metal saw the highest gains of 7.40 percent followed by the Realty and Auto added over 4% gain. On the flip side Nifty IT tumbled 2.82 percent on weekly basis. Midcap and Small Cap measures rising nearly 2 percent as well.

In Nifty stock, EICHERMOT gained 11.31% while TECHM lost 5.98% on a weekly basis. INDIA VIX closes at 23.10 suggests volatility driven market is going to remain intact. Coming to the OI Data, on the call side highest OI witnessed at 17000 Nifty followed by 16800 Nifty strike price while on the put side, the highest OI was at 16000 Nifty followed by 15800 Nifty strike price. Technically, Nifty has formed a Tweezer Bottom type pattern in the weekly chart suggesting a short term buying rally may drive the market until monthly expiry. On the daily chart, price has rebounded from the lower Bollinger band as well.

Momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone. However, Index is still struggling to get the support of 50 Simple Moving Average in daily chart. Short term investors and traders are advised to work with option strategies to neutralize the volatility. Overall, Nifty is having support at 15700 mark while on the upside 16700 followed by 16500 may act as an immediate resistance. While Bank nifty has support around 32500 while resistance is placed at 36000 on weekly chart.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

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