Local and provincial governance needs to be improved. There will have to be hard budget constraints.
We have yet to see how the law is going to be implemented, how much revenues would it generate and how these additional collections would be spent.
The stable outlook reflects revised expectations concerning the prospects of policy continuity and adherence to fiscal consolidation, which foreshadows improved chances for overall deficit reduction and stabilization of the country's debt dynamics.
Sharp declines in the government?s external debt indicators and structural improvements that, over time, should help Pakistan?s export capacity motivated the change in outlook for the foreign currency rating.
What we would look for is a gradual phasing out of the fuel subsidy and a more effective and coordinated policy response from the government and monetary authorities as and when shocks arise. Shocks such as high oil prices, a classic case of external shock, caught the government by surprise.
The government will respond in a more prompt and appropriate way. They will be in a better position to handle whatever shock may come their way.
The fact that the suspension is lifted is obviously very positive news.
If you look at the state of the value-added-tax, it has been subject to a lot of delays and setbacks, so we won't know if it will be implemented until it happens.
Have tended to be slow, reactive, and incremental over the past year.
Copyright © 2024 Electric Goat Media. All Rights Reserved.