Budget 2020-21 Highlights and Commentary

Pide
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Pide: Pakistan Institute of Development Economics

No 2020:4, PIDE Research Report from Pakistan Institute of Development Economics

Abstract: The federal budget of Pakistan for the year 2020-21 was announced in a unique backdrop of several crises, including the growing COVID-19 numbers, and an imminent threat of widespread locust swarms. The funds kept aside for dealing with the COVID-19 pandemic are already being diverted towards the locust swarms’ emergency to avoid a nationwide food shortage. To add to these crises, the artificial shortage of fuel in the country is another developing story after the recent wheat and sugar crises. The official projected growth for the FY20 is -0.38. The government expects a positive recovery in the next fiscal year; therefore, estimates the growth to be 2.1% for the FY21. However, since the coronavirus is still spreading in the country, one would expect the budget for the FY21 to accommodate the fluidity of the situation in the coming months.

Pages: 22
Date: 2020
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