June 2012

Pakistan heading for new financial crisis

* Analysts say miniscule tax revenues, mismanagement and overgenerous subsidies mean country faces major financial crisis

Miniscule tax revenues, mismanagement and overgenerous subsidies mean Pakistan is heading for a new financial crisis, say diplomats and analysts, with this week’s budget unlikely to offer any respite.

The budget deficit stood at 6.6 percent of GDP last year, according to the State Bank of Pakistan (SBP), which warned that government borrowing was crowding out the private sector from access to credit.Read More »Pakistan heading for new financial crisis