The fiscal deficit of the country is likely to soar to 6 per cent of GDP growth rate during the current financial years owing to government failure in containing the expenses and increasing income.

According to Moody’s Investors Service, the announcement was made in mini budget to enhance exports for development of production sector but the steps aimed at scaling up income were overlooked in order to achieve the target of 5.1 per cent country’s deficit.

As per rating agency owing to low income the country’s deficit is likely to go upto 6 per cent while prospects were shown that the deficit is likely to remain 5 per cent due to moves undertaken for enhancing income and better GDP growth rate.

According to Statement of State Bank of Pakistan (SBP) even remarkable decline in the development expenses of federal and provincial governments, the deficit grew by 1.4 per cent during the first quarterly of financial year 2019 due to slow pace of income and increase in overall expenses.

It has been said in the report that staggering increase was witnessed in the repayment of loans remained the mammoth challenge in he matter of expenses.

Moody’s said that 10 per cent increase in remittances was witnessed while imports dropped by 3 per cent.

Due to decline in imports of goods and services in the first six months of the financial year 2019, a decrease at the rate of 4.4 per cent year upon year in current account deficit of Pakistan was noticed and the current account deficit slashed to 6 billion dollars.

The government has received 6 billion dollars from Saudi Arabia and UAE which serves the purpose of catering to the needs for the fiscal 2019.