Major challenges during the current fiscal year 2018-19 ending June 30, were runaway imports and swelling trade and current account deficits. Also, a massive challenge for the government was the widening fiscal deficit, fuelled by heavy domestic and foreign borrowing to meet growing expenditures. The consumption growth was recorded at 11.9 per cent against 10.2 per cent growth recorded last year. Generally, higher current expenditures and lower tax revenues left limited fiscal space for public investment and social safety net. Furthermore, high-interest payments, untargeted subsidies, loss-making PSEs, energy subsidies and security-related issues all weighed on expanding the fiscal deficit.

Source: Pakistan Today June 10, 2019 15:47 UTC