Pakistan’s federal budget was announced late last week with the aim to narrow the chronic fiscal deficit. The government is rightly looking to broaden the tax base and scale back subsidies, but improvement on the fiscal side has historically proven difficult in practice. The government will need to avoid borrowing heavily from the central bank (SBP) to prevent renewed interest rate hikes.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services