The Budget 2002-03 aims at further consolidation of fiscal stabilization, while protecting social and development expenditures. The target for overall budgetary deficit has been set at 4.4 per cent of GDP, 2.7 percentage points lower than in 2001-02. The efforts to reduce the fiscal deficit rely mostly on reduction in expenditure, which will contribute 2.1 percentage points to reduction in the deficit. Despite reduction in overall expenditure, expenditure on reducing poverty and development expenditure are to increase by 18 per cent and 15 per cent, respectively.
EXTERNAL SECTOR: Despite the adverse impact of the global economic recession and post-September 11, 2001, developments on Pakistan's exports, the country's balance of payments improved significantly during 2001-02 due to a sharp increase in workers' remittances and larger inflow of foreign grants. The deficit in the current account, which had persisted throughout the last two decades, turned into a surplus of $2.7 billion in the first 11 months of the last financial year. As a result, the country's foreign exchange reserves almost doubled during the year.
EXTERNAL SECTOR: Despite the adverse impact of the global economic recession and post-September 11, 2001, developments on Pakistan's exports, the country's balance of payments improved significantly during 2001-02 due to a sharp increase in workers' remittances and larger inflow of foreign grants. The deficit in the current account, which had persisted throughout the last two decades, turned into a surplus of $2.7 billion in the first 11 months of the last financial year. As a result, the country's foreign exchange reserves almost doubled during the year.