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

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.