Islamabad:
Planning Minister Ahsan Iqbal on Thursday recognized that the tight fiscal space, driven by structural restrictions, has reduced its ability to finance development projects under the public sector development program (PSDP).
At a news conference, he said the development budget has dropped from 2.6% of GDP in 2017-18 to only 0.8% trend described as a serious structural concern for national development.
He said the government is aiming to accommodate development and other expenses through domestic resources, but reaching this goal requires raising Pakistan’s tax-to-BNP ratio to at least 16%level already maintained by regional comrades.
