Re: Pakistan Forex Reserves reach $15.780 Billion
I dont know about the unforeseen needs. the state bank wasn’t too keen on the budget. too expansionary.
The federal budget for FY08, while carrying positive incentives, entails an
expansionary fiscal stance with a substantial increase in the total budgetary outlay. In addition to the initiation of investment projects particularly in housing and construction, several relief and compensatory measures have been announced that are likely to generate extra demand in the economy. This excess demand is expected to exert pressures on the general price level through two channels. On the one side, income increase due to the 15-20 percent rise in pensions and salaries and enhancement of minimum wage of unskilled labor from Rs 4000 to 4600 per month. On the other, increase in purchasing power due to subsidies and other transfer payments of Rs 114
billion, against Rs 89 billion budgeted last year. Any inflationary impact of the fiscal measures would need to be contained.