Provinces to generate Rs286bn surplus to cut fiscal deficit

Published November 1, 2018
Provinces have agreed to adopt fiscal consolidation measures.— File
Provinces have agreed to adopt fiscal consolidation measures.— File

ISLAMABAD: The provinces have agreed to adopt fiscal consolidation measures and jointly provide Rs286 billion cash surplus to the centre to achieve the fiscal deficit limit of 5.1 per cent of gross domestic product (GDP) in FY19.

The agreement was reached at a meeting of the Fiscal Coordination Committee (FCC), presided over by Finance Minister Asad Umar here on Wednesday, according to an announcement of the ministry of finance.

The meeting was also attended by Chief Minister of Sindh and finance ministers and senior officials of Punjab, Khyber Pakhtunkhwa and Balochistan.

The meeting reviewed the bi-annual implementation of the National Finance Commission (NFC) Award for July-December 2016, January-June 2017 and July-December 2017. The reports were approved for presentation to the parliament and provincial assemblies.

The Ministry of Finance briefed the meeting regarding fiscal consolidation program of the federal government. “Provincial finance ministers assured the federal government of their full support for the fiscal consolidation efforts as it was need of the hour,” the statement said, adding the governor State Bank of Pakistan was assigned the task to chalk-out a simplified procedure in this regard.

Matters relating to provincial surpluses were also discussed. “The provincial governments expressed their support and cooperation in this realm”, the finance ministry said.

The meeting also reviewed the Public Financial Management (PFM) Programme which was being run with the help of the World Bank. It was agreed to constitute a sub-committee and technical committees to review various actionable items in PFM, for which provincial governments will provide the names of their representatives.

Published in Dawn, November 1st, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...