Budget Boost To Growth

June 2005 | Economic Analysis

Pakistan's new budget will boost economic growth during the fiscal year beginning July 1 2005 (2005/06) but risks fuelling inflation. Announcing the government's tax-and-spend plans for the coming year, Minister of State for Finance Omar Ayub Khan said that Pakistan could become a 'developed country' within the next 10 years if the economy continues to grow at its present rate. In 2004/05, real GDP expanded by 8.4% - its fastest rate for two decades. To support demand during the coming year, Khan cut personal and corporate taxes while boosting development spending by a record 30%. The economy would, he said,

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