Explanatory Memorandum on Federal Receipts 2020-21
The Explanatory Memorandum on Federal Receipts 2020-21 is part of the federal budget for FY 2020-21. This page reproduces the text of its 65 PDF pages, extracted automatically from the official PDF published by the Finance Division, Government of Pakistan.
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Page 1
FEDERAL
BUDGET
2020-2021
EXPLANATORY
MEMORANDUM ON
FEDERAL RECEIPTS
Government of Pakistan
Finance Division
IslamabadPage 2
P R E F A C E
The Annual Budget Statement containing estimated Receipts and Expenditures for Financial Year
2019-20 is being tabled in the National Assembly of Pakistan and transmitted to the Senate of Pakistan as
required under Article 80(1) and 73(1) of the Constitution of Islamic Republic of Pakistan.
The “Explanatory Memorandum on Federal Receipts” is being tabled along with the Annual
Budget Statement, as additional information, in order to help the readers to understand the details of the
receipts included in the Statement. In a structured manner, the major components of Federal resources have
been explained, with a view to distinguish Revenue from Capital receipt and to further categorize Revenue
Receipt as Tax and Non-Tax Receipt. A separate Chapter is introduced on External Resources with brief
explanation, which has been further elaborated in a separate publication titled “Estimates of Foreign
Assistance”. The mechanism for distribution of resources amongst the Provinces is also included with a brief
over view of self-financing of their respective Annual Development Programmes.
With the aim of helping the readers to form a comprehensive view of the federal resources that
have determined the formulation of the Budget for 2019-20, the nature of receipts has also been explained,
wherever considered appropriate. I hope that this document would be useful for a comprehensive
understanding of the Annual Budget Statement.
Naveed Kamran Baloch
Secretary to the Government of Pakistan
Finance Division
Islamabad, the 12th June, 2020Page 3
CONTENTS
Page No.
Chapter 1: Federal Resources at a Glance 1-3
Chapter 2: Revenue Receipts 4-6
Chapter 3: Tax Revenue 7
I. FBR Taxes 7-9
i. Direct Taxes
ii. Sales Tax
iii. Federal Excise Duty
iv. Customs Duty
II. Other Taxes 9-11
i. Gas Infrastructure Development Cess
ii. Natural Gas Development Surcharge
iii. Petroleum Levy
iv. Taxes collected by Islamabad Capital Territory Admn
v. Airport Tax
vi. Other Levies
Chapter 4: Non Tax Revenue 12
I. Income From Property and Enterprises 12-20
i. Profit of Government Authorities
ii. Mark up Receipts
iii. Dividend on Government Investments
II. Receipts from Civil Administration and other Functions 21-25
i. General Administration Receipts
ii. Share of Surplus Profit of State Bank
iii. Defence Services Receipts
iv. Law and Order Receipts
v. Community Services Receipts
vi. Social Services Receipts
(iii)Page 4
III. Miscellaneous Receipts 26-32
i. Economic Services Receipts
ii. Foreign Grants
iii. Extra Ordinary Receipts
iv. Citizenship, Naturalization, Passport Fees
v. Other Receipts
vi. Royalty on Oil and Gas
vii. Windfall Levy on Crude Oil
viii. Discount Retained on Local Crude Oil
ix. Petroleum Levy on LPG
Chapter 5: Provincial Share in Revenue Receipts 33-39
Chapter 6: Capital Receipts 40-47
I. Recoveries of Loans and Advances
II. Public Debt
Chapter 7: Public Account Receipts 48-56
I. Deferred Liabilities
II. Deposits and Reserves
Chapter 8: External Resources 57-60
I. Project Loans and Grants (PSDP & Non-PSDP)
II. Programme Loans
III. Other Loans
Chapter 9: Privatization Proceeds 60Page 5
CHAPTER 1: FEDERAL RESOURCES AT A GLANCE 1.1 Resource Mobilization is essential to meet the recurring as well as development expenditure. At Federal level, resources are generated through a well-coordinated and concerted effort by the revenue collecting agencies and other administrative units. The money so raised are properly deposited in the national exchequer, precisely accounted for and accurately reported as per the principles of financial propriety. The constitutional requirements for maintaining the federal receipts are strictly adhered to. Article 78(1) of the Constitution of Islamic Republic of Pakistan provides that all revenues received by the Federal Government, all loans raised by that Government and all moneys received by it in repayment of loan, shall form part of the Federal Consolidated Fund. Article 78(2) further provides that all other moneys received by or on behalf of the Federal Government shall be credited to the Public Account of the Federation. In pursuance thereof, the Federal Receipts are credited to Federal Consolidated Fund as well as the Public Account of Federation. 1.2 Federal Revenue Receipts are broadly categorized as Tax Revenue and Non-Tax Revenue. Federal Board of Revenue (FBR) is the major tax collecting agency as substantial portion of Tax Revenue is administered by it. Tax Revenue collected by FBR constitutes the Divisible Pool Taxes to be distributed amongst the Provinces along with other Straight Transfers in accordance with the provisions of National Finance Commission Award. In addition to FBR Taxes, there are Other Taxes i.e Gas Infrastructure Development Cess, Natural Gas Development Surcharge, Petroleum Levy etc, which are administered by Ministry of Petroleum and Natural Resources. 1.3 Non-Tax Revenue represents the recurring income earned by the Federal Government from sources other than taxes. The major sources are Interest receipts, dividends, profits earned by various regulatory authorities. Moreover, various services provided by the government i.e social services, community services, economic services, defence services etc also yield revenue for the government. 1.4 In addition to Revenue Receipts, there are Capital Receipts reflected in Annual Budget Statement. Capital Receipts comprise Recoveries of loans and advances from Provincial Governments, local bodies, financial institutions etc. as well as Public Debt raised through various government securities.
Page 6
1.5 Net proceeds of National Saving Schemes and net receipts from transactions under Deposits and Reserves head being Public Account Receipts, form part of Public Account of the Federation. 1.6 External Resources comprise project loans and grants, programme loans and other loans which are received from specialized financial institutions and friendly countries for specific development needs and budgetary requirements. 1.7 Federal Receipts may also be classified as Internal Receipts and External Receipts. Internal Receipts comprise Revenue receipts and Capital receipts. External Receipts comprise project aid, loans and grants. 1.8 Budget Estimates for Fiscal Year 2019-20 and 2020-21 in respect of total Federal Receipts under different heads are given at the next page;
Page 7
TABLE 1
SUMMARY OF FEDERAL RESOURCES
(Rs. In Million)
Object Description 2019-20 2019-20 2020-21
Code Budget Revised Budget
B 1 Tax Revenue Receipts 5,822,160.300 4,208,458.524 5,464,300.350
FBR Taxes 5,555,000.000 3,908,000.000 4,963,000.000
B01 Direct Taxes 2,081,945.000 1,623,000.000 2,043,000.000
B02 Indirect Taxes 3,473,055.000 2,285,000.000 2,920,000.000
B03 Other Taxes 267,160.300 300,458.524 501,300.350
C 2 Non Tax Receipts 894,464.066 1,296,029.849 1,108,925.890
C01 Income from Property and Enterprise 269,581.681 243,187.131 210,707.874
C02 Receipts from Civil Administration 430,961.032 809,665.513 645,615.575
C03 Miscellaneous Receipts 193,921.353 243,177.205 252,602.441
3 Total Revenue Receipts (1+2) 6,716,624.366 5,504,488.373 6,573,226.240
E 4 Capital Receipts 766,197.741 755,578.650 1,326,052.262
E02 Recovery of Loans and Advances 183,520.370 131,713.099 147,167.262
E03 Domestic Debt Receipts 582,677.371 623,865.551 1,178,885.000
5 Total Internal Receipts (3+4) 7,482,822.107 6,260,067.023 7,899,278.502
6 External Receipts 3,032,324.587 2,272,919.615 2,222,918.325
Loans 3,003,828.561 2,233,498.029 2,199,911.015
Grants 28,496.026 39,421.586 23,007.310
7 Total Internal and External Receipts (5+6) 10,515,146.694 8,532,986.638 10,122,196.827
G 8 Public Account Receipts 250,754.080 421,274.390 215,618.380
Deferred Liabilities (Net) 278,628.080 430,341.390 227,278.380
Deposits and Reserves (Net) (27,874.000) (9,067.000) (11,660.000)
9 Gross Federal Receipts (7+8) 10,765,900.774 8,954,261.028 10,337,815.207
10 Less Provincial Share in Federal Taxes 3,254,525.678 2,402,080.087 2,873,718.740
11 Net Federal Receipts 7,511,375.096 6,552,180.941 7,464,096.467Page 8
CHAPTER 2: REVENUE RECEIPTS
2.1 Revenue Receipts constitute major component of total Federal resources. Revenue Receipts may be
categorized as Tax Revenue Receipts and Non-Tax Revenue receipts, which are largely derived from the following
sources:-
i. Collection of Federal Taxes
ii. Net revenue of the Public Sector Commercial Departments
iii. Mark up on loans advanced by the Federal Government
iv. Return on investments made by the Federal Government
v. Fees, penalties and other Miscellaneous receipts realized by administrative Ministries
and Divisions of the Federal Government
vi. Surcharges, Cess, Levy and Royalty on Petroleum
2.2 TAX REVENUE
2.2.1 The major part of Tax Revenue is administered by the Federal Board of Revenue (FBR), which comprises
Customs Duty and Inland Revenue i.e Direct Taxes, Sales Tax and Federal Excise Duty. FBR taxes may also be
categorized as Direct Taxes and Indirect Taxes. Direct Taxes comprise Income Tax, Workers Welfare Fund and Capital
Value Tax. Indirect Taxes include Sales Tax, Federal Excise Duty and Customs Duty.
2.2.2 In addition to FBR taxes, there are Other Taxes i.e Gas Infrastructure Development Cess, Natural Gas
Development Surcharge, and Petroleum Levy administered by Ministry of Petroleum and Natural Resources. Besides, the
taxes collected by Islamabad Capital Territory (ICT) Administration and the Airport Tax administered by Civil Aviation
Authority also constitute Tax Revenue of the Federal Government. Tax Revenue forms part of Federal Consolidated Fund.
2.3 NON TAX REVENUE
2.3.1 Non-Tax Revenue of the federal government is administered by various Ministries / Divisions/ Departments
comprising the following sources:
i. Income from Property and Enterprise
ii. Receipts from Civil Administration and other functions
iii. Miscellaneous ReceiptsPage 9
2.4 Summary of Revenue Receipts for Budget Estimates and Revised Estimates for Fiscal Year 2019-20 and Budget
Estimates for Fiscal Year 2020-21 are given as under;
TABLE 2
SUMMARY OF REVENUE RECEIPTS
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code RCO Budget Revised Budget
I. TAX REVENUE (1+2) 5,822,160.300 4,208,458.524 5,464,300.35
(1) FBR Taxes 5,555,000.000 3,908,000.000 4,963,000.000
B01 Direct Taxes 2,081,945.000 1,623,000.000 2,043,000.000
B011 Taxes on Income 2,073,000.000 1,618,037.000 2,036,752.000
B01501 Workers Welfare Fund 5,050.000 2,548.000 3,207.000
B017-18 Capital Value Tax 3,895.000 2,415.000 3,041.000
B02 Indirect Taxes 3,473,055.000 2,285,000.000 2,920,000.000
B020-22 Customs Duties 1,000,500.000 546,000.000 640,000.000
B023 Sales Tax 2,107,738.000 1,427,000.000 1,919,000.000
B024-25 Federal Excise 364,817.000 312,000.000 361,000.000
B03 (2) Other Taxes 267,160.300 300,458.524 501,300.350
B03083 PTR Gas Infrastructure Development Cess 30,000.000 11,000.000 15,000.000
B03084 Natural Gas Development Surcharge 10,000.000 10,000.000 10,000.000
B03085
Petroleum Levy 216,025.000 260,000.000 450,000.000
C03901
B03087 Mobile Handset Levy 3,000.000 4,000.000 5,800.000
B013,14, Taxes collected by Islamabad Capital Territory 8,100.300 15,441.524 20,475.350
16,26-30 Admn
B03064 CAA Airport Tax (CAA) 35.000 17.000 25.000
II. NON TAX REVENUE (1+2+3) 894,464.066 1,296,029.849 1,108,925.890
C01 (1) Income from Property and Enterprise 269,581.681 243,187.131 210,707.874
C01008 I.T PTA (Surplus) 1,000.000 6,449.000 2,000.000
C01008 PTA (3/4G Licences) 52,730.000 125,000.000 27,000.000
C01012 Regulatory Authorities (Surplus/Penalties) 1,282.263 540.117 541.514
C012 Mark up (Provinces) 24,112.110 26,110.616 26,843.430
C013-18 Mark up (PSEs & Other) 124,494.708 36,916.811 93,344.680
C019 Dividends 65,962.600 48,170.587 60,978.250Page 10
6 (Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code RCO Budget Revised Budget
C02
(2) Receipt from Civil Admn and Other 430,961.032 809,665.513 645,615.575
Functions
C021-24 General Administration 4,287.250 3,408.453 3,440.214
C02211 SBP SBP Profit 406,070.000 785,000.000 620,000.000
C025 Defence 15,453.135 17,553.135 18,430.502
C026 Law and Order 2,034.450 1,136.567 1,198.172
C027 Community Services 1,450.172 1,039.302 1,096.627
C028 Social Services 665.675 428.053 450.057
C029 Social Services (Miscellaneous) 1,000.350 1,100.003 1,000.003
C03 (3) Miscellaneous Receipts 193,921.353 243,177.205 252,602.441
C031-35 Economic Services 2,126.537 1,254.022 2,096.020
C03601 Foreign Grants 18,794.500 27,462.737 22,516.769
C03725 Extraordinary Receipts (UNO) 30,000.000 27,440.550 28,045.490
C037 Extraordinary Receipts (Others) 56.694 30.127 40.630
C03897 Citizenship, Naturalization & Passport Fee 25,000.000 25,000.000 25,000.000
C038 Others 14,710.602 19,304.289 42,575.282
C03870 Gains on PIBs 37,000.000 25,000.000
C03905 PTR Royalty on Oil 24,672.550 25,000.000 23,000.000
C03906 Royalty on Gas 51,560.470 54,050.480 53,812.250
C03910 Discount Retained on Local Crude Price 16,000.000 16,000.000 17,000.000
C03915 Windfall Levy against Crude Oil 7,000.000 7,000.000 8,000.000
C03917 Petroleum Levy on LPG 4,000.000 3,635.000 5,516.000
Total Revenue (Other than FBR) 1,161,624.366 1,596,488.373 1,610,226.240
Total Revenue (including FBR) 6,716,624.366 5,504,488.373 6,573,226.240
Less Prov share in Federal Taxes 3,254,525.678 2,402,080.087 2,873,718.740
Net Federal Revenue Receipts 3,462,098.688 3,102,408.286 3,699,507.500Page 11
CHAPTER 3: TAX REVENUE
3.1 FBR TAXES
3.1.1 Tax Revenue collected by Federal Board of Revenue (FBR) comprises Income Tax, Sales Tax, Federal Excise
Duty and Customs Duty. Direct Taxes mainly comprise Income Tax. Federal Excise Duty, Sales Tax and Customs duty
are indirect taxes. The following table shows the revenue estimates for Fiscal Year 2019-20 (Budget and Revised) and
2020-21 (Budget);
TABLE 3
ESTIMATES OF FBR TAXES
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
B01 Direct Taxes 2,081,945.000 1,623,000.000 2,043,000.000
B023 Sales Tax 2,107,738.000 1,427,000.000 1,919,000.000
B024-25 Federal Excise 364,817.000 312,000.000 361,000.000
B020-22 Customs Duties 1,000,500.000 546,000.000 640,000.000
Total 5,555,000.000 3,908,000.000 4,963,000.000
3.1.2 Detailed analysis of head wise FBR taxes are highlighted below:
3.1.3 DIRECT TAXES
3.1.3.1 During the first 10 months of the current financial year i.e. up to 30-04-2020, Direct Tax collection stood at Rs.
1,223.2 billion with growth of 14%. Income Tax contributes around 98% in total direct taxes. The target for FY 2020-21
has been estimated at Rs. 2,100.0 billion, requiring a growth of 29.4% vis-à-vis R.E 2019-20.
3.1.3.2 Within the direct taxes, Workers Welfare Fund (WWF) is also collected by FBR and is part of Direct Tax collection.
The budget estimates for receipts of WWF for 2020-21 is Rs. 3.3 billion.
3.1.3.3 The budget and revised estimates for financial years 2019-20 and 2020-21, on account of Direct Taxes are
tabulated hereunder:Page 12
TABLE 4
DIRECT TAXES
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
B011 Income Tax 2,073,000.000 1,618,037.000 2,036,752.000
B01501 Workers Welfare Fund 5,050.000 2,548.000 3,207.000
B017-18 Capital Value Tax (CVT) 3,895.000 2,415.000 3,041.000
Total 2,081,945.000 1,623,000.000 2,043,000.000
3.1.4 Indirect Taxes
3.1.4.1 Sales Tax
3.1.4.1.1 During the first 10 months of the current financial year net revenue collection from Sales Tax (import + domestic)
remained at Rs.1,348,.4 billion as against Rs. 1,165.3 billion in the corresponding period of the last financial year showing
a decrease of 15.7%. The target for FY 2020-21 is estimated at Rs. 1,972.0 billion. The required growth would be 38.2%
% vis-à-vis R.E 2019-20.
TABLE 5
SALES TAX
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
B023 Sales Tax (excluding services) 2,104,767.000 1,424,992.000 1,916,299.000
B02366
B02367
B02369 Sales Tax on Services (ICT) 2,971.000 2,008.000 2,701.000
B02384
B02387
Total 2,107,738.000 1,427,000.000 1,919,000.000
3.1.4.2 Federal Excise Duty
3.1.4.2.1 During first 10 months of the current financial year net revenue collection from Federal Excise Duty remained at
Rs. 206.1 billion as against Rs. 184.0 billion in the corresponding period of the last financial year showing a growth of
12.0%. Budget estimates for fiscal year 2020-21 are projected at Rs. 371.0 billion. The required growth would be 18.9%
vis-à-vis R.E 2019-20.Page 13
3.1.4.3 Customs Duty 3.1.4.3.1 During the first 10 months of FY 2019-20, net Customs Duty collections is Rs 522.8 billion which is 6.5% higher than the duty collected during the corresponding period of FY 2018-19. Budget estimates for fiscal year 2020-21 are projected at Rs.658.0 billion. The required growth would be 20.5% vis-à-vis R.E 2019-20. 3.2 Other Taxes 3.2.1 Although FBR administers and collects major portion of Federal Tax Revenue, there are Other Tax sources, which are collected by Ministry of Energy (Petroleum Division), Islamabad Capital Territory Administration and Aviation Division as under; 3.2.2 Gas Infrastructure Development Cess (GIDC) 3.2.2.1 Gas Infrastructure Development Cess Act 2015 provides legal framework to levy and collect the Cess from gas consumers other than the domestic sector consumers at the rates as provided in the Second Schedule to this Act. The gas company shall be responsible for billing of cess to gas consumers, its collection and its onward payment to Federal Government in the manner as prescribed by the Federal Government. As per Section 4 of the Act, the cess shall be utilized by the Federal Government for or in connection with infrastructure development of Iran Pakistan Pipeline Project, Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline Project, LNG or other ancillary projects. 3.2.2.2 The major billing companies are 1. Sui Northern Gas Pipelines Limited, 2. Sui Southern Gas Company Limited, 3. Mari Petroleum Company Limited (formerly Mari Gas Company Limited), 4. Pakistan Petroleum Limited, 5. Tullow Pakistan Development Limited, 6. Oil and Gas Development Company Limited. Rates of Cess(Rs./MMBTU) are Rs. 300 for Fertilizer Feed, Rs. 200 for Captive Power, Rs. 100 for Industry, Rs. 100 for KESC/GENCO, Rs. 100 for IPPs, Rs.263 for CNG Region-I and Rs. 200 for CNG Region-1 3.2.3 Natural Gas Development Surcharge 3.2.3.1 As per Natural Gas Development Surcharge Ordinance, 1967, every company as mentioned in the Schedule shall collect and pay to the Federal Government a development surcharge equal to the
Page 14
differential margin i.e the amount by which the fixed sale price exceeds the prescribed price, in respect of natural gas sold by it. 3.2.4 Petroleum Development Levy 3.2.4.1 Petroleum Products (Petroleum Development Levy) Ordinance, 1961 as amended from time to time provides imposition of Petroleum Levy. Ex-refinery/import price of oil is added with Inland Freight Equalization Margin (IFEM), Oil Marketing Companies (OMCs) distribution margin and dealer's commission as fixed by Government of Pakistan in Rs/per liter. On this accumulated price of oil, Petroleum Levy is fixed by Government of Pakistan in Rs. per liter from time to time is levied. 3.2.5 Other Levies 3.2.5.1 The Federal Government introduced imposition of new levies through Finance Bill 2018 i.e Mobile Handset Levy, Health Levy on Tobacco etc. in order to collect revenue on sale of luxury items as well as to discourage their use. However, the Parliament approved only Mobile Handset Levy through Finance Act 2018. 3.2.6 Taxes Collected by Islamabad Capital Territory Administration 3.2.6.1 There are a number of taxes which are collected by the ICT Administration. These taxes are categorized as Direct Taxes like Land Revenue, Property Tax and Tax on Professional Trade and Callings and Indirect Taxes such as Provincial Excise, Stamp Duties, Motor Vehicle Tax and Hotel Tax. 3.2.7 Airport Tax 3.2.7.1 Civil Aviation Authority collects Airport Tax from domestic passengers for various services offered at the airports at rates notified by the Government from time to time. The Airline companies charge Airport Tax at the time of preparation of Air Ticket and deposit the same in the Federal treasury. 3.2.8 Budget Estimates 3.2.8.1 Budget and Revised Estimates for Fiscal Year 2019-20 and Budget Estimates for 2020-21 on account of Other Taxes are tabulated hereunder.
Page 15
TABLE 6
OTHER TAXES
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
(A) Oil & Gas Sector 256,025.000 281,000.000 475,000.000
B03083 PETR Gas Infrastructure Development Cess 30,000.000 11,000.000 15,000.000
B03084 PETR Natural Gas Development Surcharge 10,000.000 10,000.000 10,000.000
B03085 PETR Petroleum Levy 216,025.000 260,000.000 450,000.000
B013,14, (B)Taxes collected by Islamabad Capital 8,100.300 15,441.524 20,475.350
16,26-30 Territory Administration
Direct Taxes 525.000 8,370.000 12,387.200
Property Tax (Fees for Registration ofB01311 160.000 160.000 170.000
documents)
B01401 Land Revenue 300.000 10.000 17.200
B01601 Tax on Professional Trade & Callings 65.000 200.000 200.000
B03041 Petroleum Surcharge - 8,000.000 12,000.000
Indirect Taxes 7,575.300 7,071.524 8,088.150
B02601
Provincial Excise 110.000 100.000 100.000
to 2628
B02701
Stamp Duties 1,000.000 705.674 710.400
to 2735
B02801 Motor Vehicles registration fee 4,000.000 3,000.000 3500.000
B02802
Motor Vehicles Annual Token Tax & etc 2,222.000 3,024.500 3525.700
to 2812
B03021 Education Cess - 0.050 0.050
B03052 Tobacco License Fee - 1.000 1.000
B03053 Real Estate/M.V Dealer License Fee - 1.000 1.000
B03056 Bed Tax on Hotels 243.300 239.300 250.000
(C) Other Federal Levies 3,000.000 4,000.000 5,800.000
B03087 Mobile Handset Levy 3,000.000 4,000.000 5,800.000
B03064 (D) Airport Tax (CAA) 35.000 17.000 25.000
Total Other Taxes (A+B+C+D) 267,160.300 300,458.524 501,300.350
*Estimated on the basis of proposal included in Finance Bill 2019, however not approved by the ParliamentPage 16
CHAPTER 4: NON TAX REVENUE
4.1 Non-Tax Revenue represents the recurring income earned by the Federal Government from sources other than
taxes. The major receipts under this head are "Interest receipts" (received on loans extended by the Federal Government
to provinces, Public Sector Enterprises etc), dividends received from public sector entities and profits earned by various
regulatory authorities. Various services provided by the government i.e social services, community services, economic
services, defence services etc also yield revenue for the government. Broadly, Non-Tax Revenue fall under three major
heads i.e Income from Property and Enterprise, receipts from civil administration and other functions and Misc Receipts of
the Federal Ministries, Divisions and Departments.
4.2 Summary of Non-Tax Revenue for Budget and Revised Estimates for Fiscal Year 2019-20 and Budget Estimates
for Fiscal Year 2020-21 are given below.
TABLE 7
Summary of Non-Tax Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C01 Income from Property and Enterprise 269,581.681 243,187.131 210,707.874
C02 Receipts from Civil Admn and other functions 430,961.032 809,665.513 645,615.575
C03 Miscellaneous Receipts 193,921.353 243,177.205 252,602.441
TOTAL 894,464.066 1,296,029.849 1,108,925.890
4.3. Income from Property and Enterprise
Income from Property & Enterprise comprises profits earned by state regulatory authorities, Mark- up receipts on
loans extended to provinces, AJK, Public Sector Enterprises, Local bodies etc and dividends paid on Federal
government's investment in the share capital of financial institutions and commercial enterprises.
4.3.1 Profits
4.3.1.1 Profits earned by the Regulatory Authorities i.e NEPRA, SECP, PNRA, PEMRA, OGRA and PTA by way of levy
of fees, charges, penalties etc after setting of their authorized expenses is deposited in thePage 17
Federal Consolidated Fund. Budget Estimates 2019-20, Revised Budget Estimates 2019-20 and Budget Estimates 2020-
21 are given as under;
TABLE 8
Profits
(Rs. In Million)
Object Description 2019-20 2019-20 2020-21
Code Budget Revised Budget
C01012 NEPRA NEPRA (Surplus) 90.000 90.000 30.000
C01012 SECP SECP (Surplus) 15.000 16.480 18.000
C01012 PNRA PNRA (Fines) 1.600 1.700 1.200
C01012 PEMRA PEMRA (Surplus) 944.663 51.937 85.314
C01012 OGRA OGRA (Surplus+Fines) 231.000 380.000 407.000
Total (A) 1,282.263 540.117 541.514
C01008 PTA2 PTA Surplus (B) 1,000.000 6,449.000 2,000.000
C01008 PTA1 PTA (4 G/5 G) (C) 52,730.000 125,000.000 27,000.000
TOTAL (A+B+C) 55,012.263 131,989.117 29,541.514
4.3.1.2 A brief description of functions and sources of receipts of the above regulatory authorities is given as under;
4.3.1.2.1 National Electric Power Regulatory Authority (NEPRA) is mandated to develop and pursue a Regulatory
Framework, which ensures the provision of safe, reliable, efficient and affordable electric power to the electricity
consumers of Pakistan, by facilitating the transition from a protected monopoly service structure to a competitive
environment and maintaining a balance between the interests of the consumers and service providers in unison with the
broad economic and social policy objectives of the Government of Pakistan. In order to ensure effective regulatory
functions, NEPRA charges different fees at rates notified from time to time for Application & Modification Generation
License Fee, Application & Modification Transmission License Fee, Application& Modification Distribution License Fee,
Application for the Approval of Competitive Bidding. Besides, NEPRA upfront tariff is also levied like Fees Pertaining to
Tariff Standards and Procedures Regulations 2002 i.e Generation Licensees, Transmission Licensees, Distribution
Licensees, Consumers etc.Page 18
4.3.1.2.3 Pakistan Nuclear Regulatory Authority (PNRA) is entrusted with the responsibility to control, regulate and supervise all matters related to nuclear safety and radiation protection in Pakistan. It charges Licensing Fee as approved from time to time from nuclear facilities, radiotherapy and nuclear cardiology centres etc. 4.3.1.2.4 Pakistan Electronic Media Regulatory Authority (PEMRA) is required to improve the standards of information, education and entertainment, to facilitate the devolution of responsibility and power to the grass roots by improving the access of the people to mass media at the local and community level and ensure accountability, transparency and good governance by optimization the free flow of information. PEMRA charges Licensing Fee on prescribed rates for FM Radio, Satellite T.V, MMDS, IPTV, Cable TV, DTH, Landing Rights, Temporary Uplinking and Mobile TV. 4.3.1.2.5 Oil and Gas Regulatory Authority (OGRA) has been set up under the Oil and Gas Regulatory Authority Ordinance dated 28th March 2002 to foster competition, increase private investment and ownership in the midstream and downstream petroleum industry, protect the public interest while respecting individual rights and provide effective and efficient regulations. In order to implement regulatory framework, OGRA issues Licenes to oil marketing companies, gas distribution networks, fertilizer
Page 19
Manufacturing plant etc and charge fees for the services. It also carries out inspections of oil and gas distribution networks and imposes penalties. 4.3.1.2.6 Pakistan Telecommunication Authority (PTA) is mandated to regulate the establishment, operation and maintenance of telecommunication systems and provision of telecommunication services in Pakistan, to dispose of applications for the use of radio-frequency spectrum, to promote and protect the interests of users of telecommunication services in Pakistan, to promote the availability of a wide range of high quality, efficient, cost effective and competitive telecommunication services throughout Pakistan, to promote rapid modernization of telecommunication systems and telecommunication services, to investigate and adjudicate on complaints and other claims made against licensees arising out of alleged contraventions of the provisions of the Act, the rules made and licenses issued there under and take action accordingly. PTA receives fees for issuance and renewal of various telecom licenses. It also imposed fines, penalties for violations. 4.3.2 Mark Up Receipts 4.3.2.1 Federal Government advances loans to Provinces, Government of Azad Jammu & Kashmir, Public Sector Enterprises, Local Bodies and others to assist them in carrying out their development programmes and social initiatives. These loans and advances are of two types, namely, Cash Development Loans, and Foreign Relent Loans. The former is advanced by the Federal Government out of its own resources whereas the latter is relent loans. 4.3.2.2 Mark up accrued on the loans granted by the federal government to provincial governments, local bodies, financial institutions, non-financial institutions, commercial departments and government servants is reflected in this section. The mark up is chargeable in accordance with the terms and conditions of each loan agreement. 4.3.2.3 Unless specified otherwise, every loan other than foreign loan advanced by the federal government to the provincial governments is repayable over a period of 25 years. Moratorium of 5 years.
Page 20
is allowed on recovery of principal. Simple mark up is realized at a rate yearly determined by the Finance Division, as per
actual borrowing cost of the Federal Government.
4.3.2.4 Federal Government also advances loans to the Government servants for building houses and for the purchase
of transport etc. These advances are governed by the rules as specified by Finance Division from time to time.
TABLE 9
Mark Up Receipts
(Provinces)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
Punjab 15,356.450 15,878.745 16,014.581
C01201 Mark-up Cash Loans 945.795 945.795 727.090
C01205 Mark-up Foreign Loans 14,410.655 14,932.950 15287.491
Sindh 6,997.007 7,496.509 7509.444
C01202 Mark-up Cash Loans 1,589.925 1,589.925 1439.382
C01206 Mark-up Foreign Loans 5,407.082 5,906.584 6070.062
Khyber Pakhtunkhwa 1,225.364 2,180.045 2651.528
C01203 Mark-up Cash Loans - - -
C01207 Mark-up Foreign Loans 1,225.364 2,180.045 2651.528
Balochistan 533.289 555.317 667.877
C01204 Mark-up Cash Loans - - 167.723
C01208 Mark-up Foreign Loans 533.289 555.317 500.154
Total 24,112.110 26,110.616 26,843.430
Loan-Wise Break Up
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
Mark Up - Cash Loans 2,535.720 2,535.720 2,166.472
C01201 Punjab 945.795 945.795 727.090
C01202 Sindh 1,589.925 1,589.925 1439.382
C01204 Balochistan - - 167.723
Mark Up - Foreign Loans 21,576.390 23,574.896 24,509.235
C01205 Punjab 14,410.655 14,932.950 15287.491
C01206 Sindh 5,407.082 5,906.584 6070.062
C01207 Khyber Pakhtoonkhwa 1,225.364 2,180.045 2651.528
C01208 Balochistan 533.289 555.317 500.154
Total - Loans 24,112.110 26,110.616 26,675.707Page 21
TABLE 10
Mark Up Receipts (Local Bodies)
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
C013 Mark Up - Cash Loans 38,711.700 41,210.805 51,883.366
C01399 P.B.C. 179.943 179.943 176.811
C01399 NHA 37,005.526 37,005.526 41,848.256
C01399 PIA 722.413 3,198.749 3,823.836
C01399 CDA 350.000 350.000 350.000
C01399 Pakistan Machine Tool Factory 63.832 84.334 89.659
C01399 State Engineering Corporation 13.681 15.948 16.675
C01399 Heavy Mechanical Complex Taxila 34.800 34.800 34.800
C01399 Lahore Garment City Lahore 60.340 60.340 58.618
C01399 Pakistan Engineering Company 186.856 186.856 184.906
C01399 Printing Corporation of Pakistan 94.309 94.309 83.624
Pakistan Steel Mil - - 5,216.181
C013 Mark Up - Foreign Loans 35,249.959 61,651.389 63,210.802
C01399 GIK Institute 2.900 2.535 0.642
C01311 Karachi Port Trust 1,225.259 1,274.160 1276.977
C01324 PAEC -
C01399 Chashma Nuclear Power Plant 13,316.959 7,947.883 7,613.160
C01399 SKMT 1.087 1.187 1.092
C01399 CDA -
C01330 NHA 18,261.592 48,942.197 50,986.364
C01399 PPAF 80.610 80.610 71.014
C01399 NEPRA 2.087 2.087 2.027
C01399 TEVTA 25.405 25.405 21.901
C01399 ERRA 1,768.017 1,768.017 1595.527
C01399 OGRA 2.380 2.380 2.312
C01322 SSGC 1.199 1.199 1.18
C01399 Gwadar Port Authority 312.325 312.325 312.325
C01399 SUPARCO 250.139 1,291.404 1326.281
C013 Total - Local Bodies 73,961.659 102,862.194 115,094.168
TABLE 11
Mark Up Receipts
(Financial Institutions)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C014 Mark up - Foreign Loans 45.298 460.507 536.544
C01401 IDBP IDBP 45.298 45.082 16.360
C01411 PMRC Pakistan Industrial & Commercial Leasing) - 415.425 520.184
Total Mark up
(Financial Institutions) 45.298 460.507 536.544Page 22
TABLE 12
Mark Up Receipts
(Non-Financial Institutions)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
Power Sector
C015 Mark-up Cash Loans 13,883.832 15,358.093 14,449.753
C01501 WPDW WAPDA (water wing) 595.694 642.411 952.536
C01502 WPDP WAPDA (power wing) 9,138.716 9,138.716 9,007.046
C01599 TSCO TESCO 18.882 18.882 16.282
C0150A QSCO QESCO 305.226 503.956 735.030
C01599 MPCO MEPCO 99.146 99.146 97.330
C0150B GNC1 GENCO-I 18.889 18.889 15.460
C0150B GNC2 GENCO-II 1,003.799 1,003.799 980.837
C0150B GNC3 GENCO-IIII 245.882 245.882 233.595
C0150B GNC4 GENCO-IV 2.036 2.036 1.684
C0150C NTDC NTDC 115.562 115.562 115.562
C01599 NJHP NJHP 2,340.000 2,340.000 2,294.391
C01599 GLNG GENCOS (LNG) - 1,228.814 -
Mark up-Foreign Loans 26,422.272 29,164.261 26,323.743
C01517 WPDP WAPDA (Power Wing) 8,340.114 9,182.373 8,085.449
C01516 WPDW WAPDA (water wing) 58.807 70.170 62.973
C01599 TESCO TESCO 0.020 0.017 -
C01599 GENCO-II -
C01599 GENCO-III -
C01599 LSCO LESCO 496.656 496.656 438.001
C01599 NTDC NTDC 3,910.367 4,799.469 4,402.971
C01599 ISCO IESCO 552.026 668.537 590.366
C01599 HSCO HESCO 498.915 541.214 478.059
C01599 PSCO PESCO 387.130 437.920 398.844
C01599 QSCO QESCO 810.019 810.019 749.999
C01599 GPCO GEPCO 338.956 338.956 308.883
C01599 FSCO FESCO 395.325 405.051 370.922
C01599 MPCO MEPCO 786.854 801.389 717.053
C01599 PPCO PEPCO 60.056 60.056 57.238
C01599 NJHP NJHP 9,787.027 10,552.434 9,662.985
Total - Power Sector (A) 40,306.104 44,522.354 40,773.496
Autonomous Bodies/Corporations
Mark up Foreign Loans 484.784 487.294 385.638
C01527 PAKR Pakistan Railways 479.200 481.71 381.117
C01599 KFHA Karachi Fish Harbour Authority 5.584 5.584 4.521
Total - Autonomous Bodies/Corporations (B) 484.784 487.294 385.638
Total Non-Financial Institutions (A+B) 40,790.888 45,009.648 41,159.134Page 23
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C016 Government Servants
C01605 FGCG Cantt/Garrison Educational Institutions 5.107 2.552 2.680
C01605 AGP1 Office of the AGPR, Isb 109.918 109.639 120.603
C01605 AGLO AGPR sub-office, Lahore 58.471 55.400 66.480
C01605 AGKA AGPR sub-office, Karachi 13.659 15.024 16.526
C01605 AGPR AGPR sub-office, Peshawar 6.034 27.415 30.156
C01605 AGQA AGPR sub-office, Quetta 1.490 2.488 2.560
C01605 AGGL AGPR sub-office, Gilgit 17.086 7.630 8.393
C01605 MOD2 Defence 6.060 8.179 8.261
C01605 PPOD Pakistan Post Office Deptt 4.700 4.700 5.000
C01605 PWD1 Pak PWD 1.055 2.020 2.100
C01605 MINT Pakistan Mint 0.522 0.409 0.660
C01605 CAOF CAO (Ministry of Foreign Affairs) 0.092 0.084 0.092
C01605 CDNS Central Dte of National Savings 4.837 4.457 4.978
C01605 GSOP Geological Survey of Pakistan 1.259 1.047 1.151
C01605 NTF1 National Tariff Commission 0.243 0.088 0.165
Total Government Servants 230.533 241.132 269.805
C017 AJK & Others
Mark up - Cash Loans 11,453.341 14,873.231 14,301.961
C01701 Government of AJ&K 11,453.311 14,873.166 14,301.891
C01730 PNRA 0.030 0.065 0.07
Mark up - Foreign Loans 204.570 554.743 469.645
C01702 Government of AJ&K 186.211 529.166 433.154
C01709 Government of GB 18.359 25.577 36.491
Mark up - Other Loans 2,785.919 2,897.356 3,488.423
C01799 Guarantee Fee on Foreign Loans (EAD) 2,785.919 2,897.356 3,488.423
Total (AJK & Others) 14,443.830 18,325.330 18,260.029
C01801 Commercial Departments
C01801 Pakistan Post Office Deptt 22.500 18.000 25.000
Total (Commercial Deptts) 22.500 18.000 25.000
Total Mark up Cash Loans (PSEs & Others) 64,279.406 71,683.261 80,904.885
Total Mark up Foreign Loans (PSEs & Others) 65,215.302 95,233.550 94,439.795
Total (PSEs & Others) 129,494.708 166,916.811 175,344.680
Estimated Shortfall 5,000.000 130,000.000 82,000.000
Net Total (PSEs & Others) 124,494.708 36,916.811 93,344.680
Total Provinces 24,112.110 26,110.616 26,675.707
Grand Total (Mark-up) 148,606.818 63,027.427 120,020.387Page 24
4.3.3 Dividend on Government Investments
4.3.3.1 Dividends represent return on federal government's investment in the share capital of financial institutions and
commercial enterprises. The receipt of dividend varies from year to year depending upon profits earned each year by
these bodies and declaration of dividends on share capital.
4.3.3.2 The details of the estimates are given below:
TABLE 13
DIVIDENDS
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C01901 Financial Institutions (A) 895.000 785.250 860.250
C01901 NIT1 National Investment Trust 300.000 300.000 300.000
C01901 NBP1 NBP 45.000 45.000 45.000
C01901 POIC Pak Oman Investment co 250.000 215.250 215.250
C01901 PBI1 Pak Brunie Investment 150.000 150.000 150.000
C01901 PIJI Pak Iran Joint Investment 150.000 75.000 150.000
C01902 Non-Financial Institutions (B) 65,067.600 47,385.337 60,118.000
C01902 PPL1 Pakistan Petroleum Limited 5,000.000 5,000.000 5,000.00
C01902 MGCL Mari Gas Company Limited 100.000 100.000 100.000
C01902 PSO1 Pakistan State Oil 1,000.000 800.000 1,000.000
C01902 PARL Pak Arab Refinery 8,000.000 6,000.000 8,000.000
C01902 SNGP SNGPL 1,500.000 1,500.000 1,500.000
C01902 SSGCL SSGCL -
C01902 GHPL GHPL 5,000.000 5,000.000 5,000.000
C01902 OGDC OGDCL 35,000.000 23,000.000 30,000.000
C01902 PMDC PMDC 100.000 100.000 120.000
C01902 SLIC SLIC 800.000 713.610 800.000
C01902 NIC1 NIC 500.000 500.000 500.000
C01902 PRC Pak Re-Insurance Corporat 500.000 300.000 500.000
C01902 FFCL Fauji Fertilizer Co.Ltd 80.000 80.000 80.000
C01902 PSL1 Pakistan Services Ltd 6.000 6.000 6.000
C01902 PIDC PIDC 80.000 80.000 80.000
C01902 NSC1 National Shipping Corp 250.000 231.267 250.000
C01902 NPAK NESPAK 50.000 72.310 80.000
C01902 PTCL PTCL 6,300.000 3,100.000 6,300.000
C01902 NFC1 NFC 100.000 100.000 100.000
C01902 NTDC NTDC 500.000 500.000 500.000
C01902 TCP Trading Corporation of Pakistan 200.000 200.000 200.000
C01902 TPS1 Tourism Promotion Services 1.600 2.150 2.000
Total - Dividends (A+B) 65,962.600 48,170.587 60,978.250Page 25
4.4 Receipts from Civil Administration and Other Functions
4.4.1General Administration Receipts
4.4.1.1 Organs of State
4.4.1.1.1 These receipts are realized on account of fees received from the candidates appearing in various competitive
examinations conducted by Federal Public Service Commission (FPSC), tuition fees charged by the Pakistan Forest
Institute etc. However, the major portion of receipts under this head come from FPSC. Estimates of receipts on this
account are given below:
TABLE 14
Receipt from Civil Adminstration- Organs of State
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C021 Receipt from Civil Adminstration 266.000 393.000 397.000
C021 Organs of State
C02101 FPS1 Federal Public Service Commission 225.000 366.000 370.00
C02155 SEC9 SAFRON (Recovery of over Payments) 25.000 22.000 22.000
C02153 SEC9 SAFRON (PWD) 5.000 5.000 5.000
C02199 Miscellaneous Receipts 11.000
4.4.1.2 Fiscal Administration
4.4.1.2.1 Audit Fees
The department of the Auditor General of Pakistan charges fees from autonomous bodies/ corporations etc, which do not
fall within its normal audit jurisdiction, for auditing their accounts. This fee is deposited in the government account.
4.4.1.2.2 State Bank of Pakistan Receipts
The surplus profit of the State Bank of Pakistan, after making usual provision for reserve funds and payment of dividend,
is transferred to the federal government. The State Bank also pays dividend on the share capital of the Federal
Government. The value of coins that are minted and put in circulation in one year are also deposited by the State Bank in
Government Account.
4.4.1.2.3 Pakistan Mint Receipts
The Pakistan Mint's receipts are mainly from the disposal of dross & scrap and from minting of medals for defence
services, sports and academic institutions etc.Page 26
4.4.1.2.4 Pension and Gratuity Contribution
These receipts pertain to pension and gratuity contributions by the borrowing departments in respect of officials serving on
deputation basis with them.
The estimates of receipts from fiscal administration are given below:
TABLE 15
General Administration Receipt - Fiscal Adminstration
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
C022 General Admn. Receipts - Fiscal Admn 407,291.000 785,666.093 620,666.084
C022 Fiscal Administration - Audit
C02206 AGP1 Receipts of AGP office (Audit Other) 3.000 1.093 1.084
C022 Fiscal Administration - Currency
C02211 SBP1 SBP Profit 406,070.000 785,000.000 620,000.000
C02212 SBP1 Currency Dividend from SBP 3.000 - -
C02227 SBP1 Penalty imposed by SBP on NBP 15.000 15.000 15.000
C022 Fiscal Administration - Mint
C02233 MINT Pakistan Mint (Assay Account) 50.000 50.000 50.000
C02234 Other
C022 Fiscal Administration in Aid of Superannuation
C02241 AGPR Contribution of Pension and gratuities (AGPR) 750.000 600.000 600.000
C02234 Miscellaneous Receipts 400.000 - -
4.4.1.3 Economic Regulations
4.4.1.3.1 The receipts on this account largely comprise insurance fees realized under Insurance Act, 1989. The estimates
are given below:
TABLE 16
General Administration Receipt - Economic Regulations
(Rs. In Million)
Object Description DIVISION/ 2019-20 2019-20 2020-21
Code OFFICE Budget Revised Budget
C023 Economic Regulations 1,900.000 2,341.310 2,376.000
C02301 Trade Mark Reg Fee & Other Misc Receipts 100.000 65.310 100.00
C02302 SECP1 Fees realized under Insurance Act 1938/1989 (SECP) 1,050.000 1,526.000 1,526.00
C02308 TDAP Anti Dumping Duties Fee & Tariff Protection Fee 750.000 750.000 750.00
C02370 Others -Page 27
TABLE 17
General Administration Receipt Economic Statistics
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C024 General Admn. Statistics 900.250 8.050 1.130
C02401 PBSS Sale of Census Publication (Planning) 0.250 0.050 0.060
C02470 PBSS Sale of data Misc. Receipts (Others) (Planning) 800.000 8.000 1.070
C02470 Others- Recovery of unspent from provinces 100.000 - -
Total Gen Admn (Excl SBP Profit) 4,287.250 3,408.453 3,440.214
4.4.2 Defence Services Receipts
4.4.2.1 These receipts are realized mainly on account of dues from civil agencies, sale & auction of obsolete stores and
charges realized on account of use of army aviation facilities, hospital stoppages roll and receipt of Govt. share out of the
fees paid by civil patients treated in Military Hospitals etc.
4.4.2.2 The estimates of defence receipts are given below :
TABLE 18
Defence Services Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C025 Defence Services Effective 15,453.135 17,553.135 18,430.502
C02520 MODS Effective (MOD+Defence Production Div) 14,125.792 16,225.792 17,036.792
C02520 CMHH Hospital Stoppage (Defence Div) 1,327.343 1,327.343 1,393.710
4.4.3 Law and Order Receipts
4.4.3.1 These receipts represent the proceeds from fines imposed by Insurance Appellate Tribunals, Federal Service
Tribunals, Income Tax Tribunals, Drug Courts and Special Judges under the administrative control of Law and Justice
Division. These also include fines, fees and recoveries of the Supreme Court of Pakistan, civil armed forces and frontier
watch & ward. The fees realized on account of issuance and renewal of arms licenses by the Ministry of Interior are also
reflected under this classification.Page 28
4.4.3.2 The estimates of receipts from law and order are given as under;
TABLE 19
Law and Order Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21
DescriptionCode Budget Revised Budget
C026 Law and Order Receipts 2,034.450 1,136.567 1,198.172
C026 Justice
C02601 Sale proceeds of unclaimed and escheated property
C02602 LAW Court fee/copying fee & fine (Justice Law Courts) 149.150 250.000 250.180
C02604 General Fees, Fines and Forfeitures
C02606 SCP Supreme Court of Pakistan 5.000 - -
C02609 Receipt of the Official Record Room
C02610 Recoveries of overpayments - 80.834 85.484
C02613 Others - 3.450 4.460
C02669 LAW Cost of service/copying fee FST (Law & Justice) 0.850 1.000 2.000
C026 Frontier Watch and Ward
C02621 MOI1 Frontier Constabulary & Militia Receipts (MOI) - 200.264 230.120
C02635 MOI1 Receipts under Arms Act (MOI) 300.000 200.000 200.000
C02636 AGP Fees fines and forfeitures (AGP) - 0.008 2.048
C02637 OCCI Receipts of Motor Driving Licenses (ICT)
800.000 394.000 414.000
C02638 OCCI Traffic Fines (ICT)
C02647 CAF1 Fines and Penalties (CAF, Interior) 20.000 1.320 1.720
C02648 CAF1 Recoveries of Over Payments (CAF, Interior) 439.450 4.691 7.160
C02650 Others - 1 1
C02669 SEC9 Other - Frontier Regions (SAFRON) 20.000 - -
C02677 Misc Receipts 300.000 - -
4.4.4 Community Services Receipts
4.4.4.1 The receipts under community services comprise rent of government buildings, land, guest houses, hostels and
sale proceeds of material of demolished buildings. These receipts are realized by Housing and Works Division, Overseas
Pakistanis Division, Kashmir Affairs and Gilgit Baltistan Division, SAFRON and Interior Division (Frontier Corps). The
receipts realized by Survey of Pakistan for its services and supply of maps are also included here. Details of the estimates
are given below:-
TABLE 20
Community Services Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C027 Community Services Receipts 1,450.172 1,039.302 1,096.627
C027 Works- Building
C02701 HOUS Rent of Govt Buildings realized by Estate Office 850.000 500.000 500.000
C02701 HOUS Housing & Works (Ground Rent Section) - 100.000 100.000
C02701 PMD2 Building Rent (Pak. Met. Deptt. Ibd) (Aviation Div) 5.000 0.500 0.500
Rent of buildings realized by Frontier Corps. Khyber
C02701 CAF1 3.801 0 0
Pakhtunkhwa, Peshawar (Interior Division)Page 29
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
C02701 AGP1 Recovery of Building Rent (AGP) 6.521 3.152 1.377
C02701 PAEC Building Rent of PAEC (Hostel Charges) 20.000 25.000 25.000
Collection of Payment for Services Rendered (Pak.
C02705 PMD2 -
Met. Deptt. Ibd) (Aviation Div) 1.000 1.000
C02706 PMD2 Others - (Pak. Met. Deptt. Ibd) (Aviation Div) - 1.000 1.000
C02706 HOUS Other Receipts of Pak. PWD (including GRS) 338.600 250.650 300.600
C02706 Miscellaneous Receipts 80.000 40.000 40.000
C027 Works - Communication
C02711 HOUS Rent of Govt Buildings realized by Pak PWD 100.000 80.000 84.000
C02714 Recoveries of overpayments
C02716 CMTC Others- CTTI - Hostel Charges/Fees (Comm. Div.) 6.200 6.700 7.400
C027 Public Health
C02721 Sale proceeds of sera and vaccines . 1.600 2.000
C02725 Collection of payments for services rendered . 6.200 9.250
C027 Science Research and Survey
Scientific Research and Survey (Survey of Pakistan)
C02731 SOP1 40.050 21.000 22.000
(Defence Div)
Other - Met. Data Sale Charges, Lahore, Karachi
C02734 PMD2 - 2.500 2.500 (Aviation Div.)
4.4.5 Social Services Receipts
4.4.5.1 The receipts under this head are realized on account of fees charged from students of the educational institutions
of various Ministries and Defence Division. The entry fee for historical places and archeological sites is collected by
National Heritage and Integration Division. The charges for medical services are realized by the federal government
hospitals and health establishments, and tuition/training fee realized by Human Resources Development Division. The
estimates are given in the following table;
TABLE 21
Social Services Receipt
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
Social Services 665.675 428.053 450.057
C028
Education Fees from Schools & Colleges (MoFE&TT)
C02818 240.000 108.188 117.634
C02818 Education Fees from Schools and Colleges (MOD) 125.000 91.031 93.000
C02818 Pakistan Computer Bureau 1.800 - -
C02823 National Archives (Cabinet Division) 0.025 0.025 0.030
C02824 National Library of Pakistan (Heritage Division) 1.500 1.500 1.500
Health
C02825 Health - Hospital Receipts - 5.430 5.701
C02826 Health - Recoveries of Diet Charges - 2.676 2.810
C02827 Health - Rooms Rent - 18.132 19.040
C02828 H.Govt.share fees realized by doctors from patient 110.000 179.416 188.387
C02860 OCCI Sale of Vaccination (ICT/MoNHSRC) 1.500 1.525 1.775
C02871 Receipts of Health Establishments (MoNHSRC) 8.850 1.650 1.700
C02871 Miscellaneous Receipts 7.000 7.000 7.00
Health Hospital Receipts of Federal Govt Hospitals
C02875 170.000 11.480 11.48 (MoNHSRC)Page 30
4.4.6 Social Services Misc Receipts
4.4.6.1 Under Social Services Miscellaneous Head, the Emigration Fee deposited by Pakistani Workers working abroad
in terms of Emigration Ordinance, 1979 are reflected. The receipts of Human Resource Development Division on account
of registration of overseas employment agencies and deposits by individuals for protection of their visas are also deposited
under this head. Moreover, the fee for registration of trade union and West Pakistan Ordinance, 1969 are also reflected
under this Head of Account. The details are given in the following table.
TABLE 22
Social Services Miscellanenous Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C029 Social Services Miscelaneous 1,000.350 1,100.003 1,000.003
Receipts under West Pakistan Ordinance 1969 (ICT)C02905 OCCI 0.350 0.003 0.003
Registration and other fees Pakistanis working Abroad
C02906 BEO1 (Imigration Fee, BoI & Overseas) M/o Overseas Pak. 1,000.000 1,100.000 1,000.00
4.5 Miscellaneous Receipts
4.5.1 Miscellaneous receipts comprise (i) Economic Services Receipts and (ii) Other Receipts. A brief description of these
receipts is given in the following paragraphs.
4.5.2 Economic Services Receipts
4.5.2.1 Agricultural Receipts
4.5.2.1.1 These receipts are realized on account of quarantine fee on animal exports/imports by National Food Security
and Research Division.
4.5.2.2 The receipts under Economic Services Head mostly comprise of Food Department, Agriculture Receipts and
Farms Receipts collected by Islamabad Capital Territory. The details are as under:-
TABLE 23
Economic Services Receipts - Food & Agriculture (Miscellanenous Receipts)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C031 Food & Agriculture 640.587 279.450 641.070
C031 Food
C03101 OCCI Food Department (ICT) 0.060 0.060 0.100
C03102 Recoveries of Overpayments
C03103 OCCI Services Rendered (ICT) 0.030 0.030 0.030
C031 Agriculture Receipts
Agriculture Receipts (ICT)C03116 OCCI 0.300 29.760 31.240
C03123 DPPK Plant Protection services (NFS&R) 239.297 198.700 208.700
C03124 OCCI Receipts from soil conservation & Operations (ICT) 0.900 0.900 1.000
C03199 Miscellaneous Receipts 400.000 50.000 400.000Page 31
4.5.2.3 The receipts of Economic Services - Fisheries & Animal Husbandry of Livestock and Diary Development in federal
capital territory are collected by Islamabad Capital Territory Administration are reflected in the table given below:
TABLE 24
Economic Services Receipts-Fisheries & Animal Husbandry
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
C032 Fisheries & Animal Husbandry 204.750 245.700 235.250
C032 Fisheries
C03201 OCCI Ordinary Receipts (Fisheries) - ICT 11.750 11.500 22.000
C03201 Receipts of Marine Fisheries Department (MoMA) 43.000 43.000 48.000
Receipts of Pakistan Maritime Security Agency (MOD) 5.000
C03205 35.000 5.000
C032 Animal Husbandry
C03226 Receipts from transferred Agricultural Farms
C03227 OCCI Insemination Fees (ICT) 5.000 0.200 0.250
C03229 Recovery of Overpayments
C03231 AQD4 Receipts of Animal Quarantine Deptt (NFS&R) 140.000 140.000 145.000
Others- Income from RVMP, Registration of Animal
C03231 Husbandary Graduates, Students, Faculty - 16.000 15.000
Registration, Inspection Fee (PVMC)
TABLE 25
Economic Services Receipts-Forest
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C033 Economic Services Receipts - Forest 0.300 0.300 0.300
C03370 Other Receipts (ICT) 0.300 0.300 0.300
TABLE 26
Economic Services Receipts-Cooperation Irrigation, Embankment
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
Economic Service Receipt- Cooperation 16.000 5.000 5.000
C034 Irrigation, Embankment, Drainage
C03406 Others - Miscellaneous Receipts (ICT) 16.000 5.000 5.000
4.5.2.4 The table given below reflects the receipts of Explosive Department for industrial safety. The Ports & Shipping
Department Receipt on account of management and upkeep of port/landing charges.
4.5.2.5 Receipts from Cabinet Division
4.5.2.5.1 The sale proceeds of government publications and stationery by the Controller of Forms and Stationery realized
from various government departments/agencies are reflected under this head.
4.5.2.6 Receipts from Explosive Department
4.5.2.6.1 Receipts under this head pertain to the fee charged by the Department of Explosives for granting licenses to the
firms dealing in explosives.Page 32
4.5.2.7 Receipts from Lighthouses and Lightships
4.5.2.7.1 These receipts comprise of (i) examination fee, survey and registration fees realized by the Mercantile Marine
Department, Karachi, (ii) cargo shipping and discharging fees from the shipping companies, (iii) fines realized from
seamen for offences committed by them, (iv) fees realized from cadets under training in the Mercantile Marine Academy,
Karachi, Seamen's Training Centre, Karachi and (v) Lighthouse dues realized from the shipping companies operating on
the coasts of Pakistan. These receipts are shown under transportation and communication heads.
TABLE 27
Economic Services Receipts-Others
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C035 Economic Services Receipts - Others 1,264.900 723.572 1,214.400
C035 Industrial and Mineral Resources
Industrial Safety Explosives Department (M/o
C03506 DOE1 700.000 250.000 700.000
Industries)
PAEC (cost of tender documents) 2.000 2.000 2.000C03518 PAEC
C035 Stationery
C03526 DSF1 Department of Stationery & Forms (Cabinet Division) 1.200 1.200 1.200
C03545 Receipts under Excise Duty on Minerals - 1.650 1.700
C03545 OCCI Excise Duty on Minerals under Partnership Act (ICT) 1.700 0.450 0.500
Survey Fees - Mercantile Marine Department, Karachi
C03560 80.000 60.000 60.000
(MoMA)
C03560 Mercantile Marine Department, Gawadar (MoMA) - 1.628 2.000
C03561 Fees for the Engagement and Discharges - Seamen's 25.000 25.000 25.000
Pakistan Marine Academy- Registration and Other
C03565 10.000 6.644 11.000
Fee
C035 Lighthouses and Lightships
C03571 Light Dues- Lighthouses & Light Ships (MoMA) 425.000 370.000 406.000
C03576 Miscellaneous Receipts 20.000 5.000 5.000
TABLE 28
Foreign Grants
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C036 Grants 18,794.500 27,462.737 22,516.769
C03601 Foreign Grants- Devp. Grants from Foreign Govt. 18,794.500 27,462.737 22,516.769
4.5.3 Other Receipts
4.5.3.1 These receipts are realized by different Ministries, Divisions and Departments. The brief introduction of the main
regular receipts under this head is given as under with a relevant statistics in two tables;
4.5.3.2 Receipts From UN, Staff Welfare and Accreditation
4.5.3.2.1 The major portion of receipts comes from United Nations in lieu of services rendered by Pakistani troops taking
part in various peacekeeping operations worldwide. The other receipts are generated by various staff welfare initiatives
and accreditation services. Budget Estimates are given as under;Page 33
TABLE 29
Extraordinary Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C037 Receipts 30,056.694 27,620.677 28,286.120
C037 Extra Ordinary Receipts
C03707 PAEC PAEC (Penalties) 0.200 0.200 0.200
C03720 Miscellaneous Receipts 10.000 - -
C037 Other Recipts
C03725 MOI1 Others- Receipts from UN (Military) M/o Defence 26,852.400 26,852.400 27,456.340
C03725 MOI2 Others- Receipts from UN (Civil) M/o Interior 3,147.600 588.150 589.150
C03727 AGP1 Recovery of Monetized Value (AGP) 0.474 0.391 0.430
C03743 Working Women Hostel, G-6/3, Islamabad etc 4.020 - -
C03743 SWO1 Receipts of Staff Welfare Organization (Estb. Div) 32.000 21.536 32.000
C03744 PANC Pak. National Accreditation Council (M/o Science) 10.000 8.000 8.000
C03761 Surplus Profit of NADRA - 75.000 100.000
C03762 Surplus Profit of Civil Aviation Authority - 75.000 100.000
C03781 Fines and Penalities by NADRA -
4.5.3.3 Citizenship, Naturalization and Passport Fees
4.5.3.3.1 These receipts are realized mainly by the Immigration & Passport Offices in Pakistan and Pakistani Missions
abroad on account of issuance, renewal and endorsement of passports and visas.
TABLE 30
Citizenship, Naturalization, Passport and Copyright Fees ( )
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C038 Passport Fees 25,000.000 25,000.000 25,000.000
C03897 DGIP Citizenship, Naturalization & Passport Fee (MOI) 25,000.000 25,000.000 25,000.000
4.5.3.4 Royalty, Pollution, Trekking Fees From Tourists
4.5.3.4.1 The royalty fee is charged from the tourists coming to Pakistan for climbing the mountain peaks having a height
of 7000 meters. Whereas, tracking fee is charged from trackers climbing the mountain on the established track less than
the height of 7000 meters.
4.5.3.5 Receipts from Tourism Department
4.5.3.5.1 The receipts of the Tourism Department include licenses fee of Hotels, Restaurants and Travel Agencies,
Registration Fee of Hotels & Restaurants, Licenses Renewal fee of Hotels, Restaurants and Travel Agencies and the
fines/late fee of Hotels, Restaurants and Travel Agencies within Capital Territory by Capital Administration & Development
Division.Page 34
4.5.3.6 Receipts Collected by Ministry of Foreign Affairs
4.5.3.6.1It includes the receipts realized on the auction of vehicles, sale of used machinery and equipment, gains on
exchange against the remittances made by the Government for the expenditure of the Pakistan's missions in various
countries, recovery of overpayment made to the Government servants posted abroad and the deduction of income tax, GP
Fund, Benevolent Fund, House Building and Motor Car Advances of the employees posted in various Pakistan's missions
abroad.
4.5.3.7 Kashmir Affairs and Gilgit Baltistan Division
4.5.3.7.1 These include the receipts from motor vehicles, forest revenues, agriculture income, rent of buildings, electricity
charges and other indirect taxes collected and deposited directly into the Government Treasury by the administration of
the Kashmir Affairs & Gilgit - Baltistan Division.
4.5.3.8 States and Frontier Region Division
4.5.3.8.1 There are various receipts which are collected on account of stamp duty, fee and fine, agriculture receipts, etc. in
various agencies in the Federally Administrated Tribal Areas. These receipts are collected by the Political Agents of
various Agencies and deposited directly into the Government Account.
4.5.3.9 Receipts from Special Communication Organization
4.5.3.9.1 These receipts are collected by the Special Communications Organization for providing telecommunication
services in specific areas. The Special Communications Organization primarily operates in the Azad Kashmir and Gilgit-
Baltistan.
TABLE 31
Details of Other Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C038 Other Receipts 14,710.602 56,304.289 67,575.282
C03801 CAF1 Civil Armed Forces (Unclaimed Deposits) (MOI) 30.349 -
C03802 CAF2 Civil Armed Forces (Sale of Stores) (MOI) 60.000 -
C03802 MSA1 Sale of stores Materials - Defence Div (Main+PMSA) 0.500 0.500 0.500
C03802 PAEC Sale of Stores & Material (PAEC) 17.650 17.650 18.650
C03802 MOFA Sale of Stores and Material (M/o Foreign Affairs) 2.000 0.500 6.000
Sale publicity material & rent of documentaries
C03802 MOIB 0.150 1.150 0.150 (MOIB)
C03802 AGP1 Sale of Stores and Material (AGP) 2.296 0.602 0.553
C03802 ASFH Sale of Store and Material (ASF) Aviation Div. 1.553 7.369 3.304
Advance Yearly Rent for Exploration & Prospecting
C03805 PETR 350.000 300.000 300.000 Licensing (Petroleum Div.)
C03805 NCRD Rent, Rates & Taxes (AHK & NCRD) 3.500 1.900 2.000
C03805 MOI1 Rent, Rates & Taxes (Auqaf) - ICT 0.400 0.357 0.357
C03805 Health Hospital Receipts (PIMS) - 2.222 2.333
C03806 OCCI Citizenship Copyrights (ICT) 3.400 1.200 1.500
Realizations under the Monopolies & Restrictive
C03807 CCP1 100.000 73.250 202.492
(Competetion Commission of Pakistan)
C03808 OCCI Receipts - Mines & Mineral Act (ICT) 0.150 0.010 0.010
C0380B Receipts under Abandoned Properties Act 1975 - 8,000.229 25,000.000
C03812 MOFA Gains on Exchange (M/o Foreign Affairs) 75.000 75.000 80.000
C03814 TDAP Sale Proceeds of GSP (TDAP) (Commerce) 16.000 - -Page 35
(Rs. In Million)
Object Description 2019-20 2019-20 2020-21
C03818 OCCI Fee for Registration of Societies (ICT) 0.005 0.010 0.010
C03821 DTS3 Receipts of Tourist Department (IPC Div) 30.000 19.000 21.000
C03824 MOFA Recovery of Overpayments (M/o Foreign Affairs) 120.000 90.000 95.000
C03824 ASFH Recoveries of Overpayment (ASF) Aviation Div. 1.320 0.500 0.500
C03825 OCCI Payment for services Rendered (ICT) 0.060 0.080 0.600
C03829 PAEC Other Receipts - Fees, Fines & Forfeitures (PAEC) 0.150 0.150 0.150
C03835 OCCI Arms License Fee (D.C ICT) 20.000 7.500 8.000
Airport Entry/ Tender Fees, Fines (ASF) Aviation
C03841 ASFH
Div. 3.931 1.500 0.500
C03849 ASFH Contractor Penalty (ASF) Aviation Div. - 6.000 2.500
C03850 NAB1 Recovery of National Accountability Bureau 200.000 75.000 75.000
C03853 PARC Sale of Publications (PPARC) 0.600 0.600 0.600
C03855 PEP2 EIA Review (Pak. Environmental Protection Agency) 0.630 1.345 1.800
Others - National Academy of Performing Arts (NAPA)
C03870
Course Fee & Performance Income. IPC Div. - 10.377 10.896
C03870 Emergency Relief Cell (Cabinet Division) 10.000 - 21.912
C03870 Receipts of Toshakhana (Cabinet Division) 10.000 10.000 10.000
C03870 Gains on PIBs - 37,000.000 25,000.000
C03870 PAEC Others PAEC 30.000 30.000 34.000
C03870 NHLH Quaid Azam Papers Wing 0.050 0.050 0.050
C03870 National Language Promotion Deptt 1.000 1.500 1.500
C03870 MOFA Other Receipts of M/o Foreign Affairs 250.000 206.000 210.000
C03870 CGA1 Office of the Controller General of Accounts 0.758 2.838 1.915
C03870 NI Rehabilitation of Medicines 5.150 5.500 6.000
C03870 States & Frontier Regions Div. (FATA) 257.000 - -
C03870 Miscellaneous Receipts of attached departments 11,000.000 8,000.000 14,000.000
C03870 Miscellaneous Receipts 100.000 - -
Income from Swing Pool, Ground Hall and
- 48.400 49.000 Membership Fee, (Hostel & Others) IPC Div.
C03884 PETR Fees for Exploration & Prospecting Licensing 1.000
C03893 SCO1 Receipts of Special Communications Organization 2,000.000 2,300.000 2400.000
C03895 MOIB Film Censorship Fee (MoIB&NH) 6.000 6.000 6.500
4.5.4 Receipts from Oil and Gas Sector
4.5.4.1 Royalty on Oil and Gas
4.5.4.1.1 According to Article 16(1) of the Constitution of Islamic Republic of Pakistan, the royalty collected by the Federal
Government shall not form part of the Federal Consolidated Fund and shall be paid to the provinces in which the well-head
of natural gas is situated. As per Clause 5 of 7th National Finance Commission Award notified vide President's Order No.5
of 2010, each of the provinces shall be paid in each financial year as a share in the net proceeds of the total royalties on
crude oil an amount which bears to the total net proceeds the same proportion as the production of crude oil in the
province in that year bears to the total production of crude oil.Page 36
4.5.4.1.2 Petroleum Exploration & Production Policy 2012 approved by Ministry of Petroleum & Natural Resources
Government of Pakistan imposes Royalty on exploration and production of oil and gas. Clause 4.1of Section II of the said
policy provides that Royalty will be payable at the rate of 12.5% of the value of petroleum at the field gate. The royalty will
be paid by the Federal Government to Provinces to the extent of their share of liquid and gaseous hydrocarbons (such as
LPG, NGL, Solvent oil, gasoline and others) as well as all substances including sulphur, produced in association with such
hydrocarbon. The lease rent paid during the year shall not be deductible from the royalty payment. 10% of the royalty will
be utilized in the district where oil and gas is produced for infrastructure development.
4.5.4.2 Windfall Levy on Crude Oil
4.5.4.2.1 As per Petroleum Exploration & Production Policy 2012, Windfall Levy (WLO) will be applicable on crude oil and
condensate using the formula i.e WLO = 0.4 x (M-R) x (P-B) Where: WLO - Windfall Levy on crude oil and condensate;
M - Net production (petroleum produced & saved); R - Royalty; P - Market Price of crude oil and condensate; B - Base
Price. All the benefit of windfall levy may be equally divided between the Federal Government and Provincial Government
concerned.
4.5.4.3 Discount on Local Crude Oil
4.5.4.3.1 Crude Oil and Natural Gas is explored/extracted by the Exploration and Production (E&P) Companies working
under "Petroleum Concession Agreement (PCA)". E&P companies sell the crude oil to refineries at the rate prevailing in
the international market based on the formula as per PCA. Under various agreements, E&P Companies agree to sell the
crude oil to refineries at different discounted rate on attainment of certain milestones as per PCA. The amount of discount
is retained by the refineries while making payment of crude oil to E&P companies and deposited in Government head of
account.
4.5.4.4 The details of development surcharges and levies are given below:-
TABLE 32
Royalties, Discount retained on Crude Price and Windfall Levy
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
C03905 Royalty on Oil 24,672.550 25,000.000 23,000.000
C03906 Royalty on Gas 51,560.470 54,050.480 53,812.250
C03910 Discount Retained on Local Crude Price 16,000.000 16,000.000 17,000.000
C03915 Windfall Levy against Crude Oil 7,000.000 7,000.000 8,000.000
C03917 Petroleum Levy on LPG. 4,000.000 3,635.000 5,516.000
Total - Development Surcharges and Royalties 103,233.020 105,685.480 107,328.250
other than Petroleum LevyPage 37
Chapter 5: PROVINCIAL SHARE IN REVENUE RECEIPTS
5.1 The provincial share of revenues from the divisible pool taxes, straight transfers etc. is governed in accordance with
the provisions of 7th National Finance Commission Award notified vide President's Order No.5 of 2010 issued on 10th
May, 2010, which is reproduced as under:
PRESIDENT'S ORDER NO.5 OF 2010
AN
ORDER
to provide for distribution of revenues and certain grants
WHEREAS in pursuance of clause (1) of Article 160 of the Constitution of the Islamic Republic of Pakistan
(hereinafter referred to as the Constitution), the President, by the Finance Division's Notification No.S.R.O. 739(I)/2005
dated 21st July, 2005, as modified by the said Division's Notification No.S.R.O.693(I)/2009, dated 24th July, 2009,
appointed a National Finance Commission to make recommendations, among other matters, as to the distribution
between the Federation and the Provinces of the net proceeds of certain taxes;
AND WHEREAS the said Commission has also submitted its recommendations with regard to the said
distribution;
NOW, THEREFORE, in pursuance of clauses (4) and (7) of Article 160 of the Constitution, the President is
pleased to make the following Order:-
1. Short title and commencement.-(1) This Order may be called the Distribution of Revenues and Grant-in-Aid
Order, 2010.
(2) It shall come into force on the first day of July, 2010.
2. Definitions.- In this Order, unless there is anything repugnant in the subject or context.---
(a) "Net Proceeds" means, in relation to any tax, duty or levy, the proceeds thereof reduced by
the cost of collection as ascertained and certified by the Auditor General of Pakistan, and
(b) "taxes on income" includes corporation tax but does not include taxes on income
consisting of remuneration paid out of the Federal Consolidated Fund.
3. Distribution of Revenues. (1) The divisible pool taxes in each year shall consist of the following taxes
levied and collected by the Federal Government in that year, namely:
(a) taxes on income;
(b) wealth tax;
(c) capital value tax;
(d) taxes on sales & purchases of goods imported, exported, produced, manufactured or
consumed;
(e) export duties on cotton;
(f) customs duties;
(g) federal excise duties excluding the excise duty on gas charged at well-head; and
(h) any other tax which may be levied by the Federal Government.Page 38
(2) One percent of the net proceeds of divisible taxes shall be assigned to Government of Khyber
Pakhtunkhwa to meet the expenses on War on Terror.
(3) After deducting the amount as prescribed in clause (2), of the balance amount of the net proceeds of
divisible pool taxes, fifty six percent shall be assigned to the provinces during the financial year 2010-11 and fifty seven
and a half percent from the financial year 2011-12 onwards. The share of the Federal Government in the net proceeds of
the divisible pool shall be forty-four percent during the financial year 2010-11 and forty -two and half percent from the
financial year 2011-12 onwards
4. Allocation of shares to the Provincial Governments. (1) The Province -wise ratios given in clause (2)
are based on multiple indicators. The indicators and their respective weights as agreed upon are:-
(a) Population 82.0%
(b) Poverty or backwardness 10.3%
(c) Revenue collection or generation 5.0%
(d) Inverse population density 2.7%
(2) The sum assigned to the Provincial Governments under Article 3 shall be distributed amongst the
Provinces on the basis of the percentage specified against each:-
(a) Balochistan 9.09%
(b) Khyber Pakhtunkhwa 14.62%
(c) Punjab 51.74%
(d) Sindh 24.55%
Total: 100.00%
(3) The Federal Government shall guarantee that Balochistan Province shall receive the projected sum of
eighty-three billion rupees from the provincial share in the net proceeds of divisible pool taxes in the first year of the Award.
Any shortfall in this amount shall be made up by the Federal Government from its own resources. This arrangement for
Balochistan shall remain protected throughout the remaining four years of the Award based on annual budgetary
projections.
5. Payment of net proceeds of royalty on crude oil : Each of the Provinces shall be paid in each
financial year as a share in the net proceeds of the total royalties on crude oil an amount which bears to the total net
proceeds the same proportion as the production of crude oil in the Province in that year bears to the total production of
crude oil.
6. Payment of net proceeds of development surcharge on natural gas to the provinces : (1) Each of
the Provinces shall be paid in each financial year as a share in net proceeds to be worked out based on average rate per
MMBTU of the respective province. The average rate per MMBTU shall be derived by notionally clubbing both the royalty
on Natural Gas and Development Surcharge on Gas. Royalty on natural gas shall be distributed in accordance with
clause (1) of Article 161 of the Constitution whereas the development surcharge on natural gas would be disrtributed by
making adjustments based on this average rate.
(2) The development surcharge on natural gas for Balochistan with effect from Ist July, 2002 shall be
reworked out hypothetically on the basis of formula given in clause (1) and the amount, subject to maximum of ten billion
rupees, shall be paid in five equal installments by the Federal Government as grants to be charged on the Federal
Consolidated Fund.Page 39
7. Grants-in-Aid to the Provinces: There shall be charged upon the Federal Consolidated Fund each year,
as grants-in-aid of the revenues of the province of Sindh an amount equivalent to 0.66% of the provincial share in the net
proceeds of divisible pool as a compensation for the losses on account of abolition of octroi and zila tax.
8. Sales Tax on services: NFC recognizes that sales tax on services is a Provincial subject under the
Constitution of the Islamic Republic of Pakistan, and may be collected by respective Provinces, if they so desired.
9. Miscellaneous: (1) NFC also recommended increase in the rate of excise duty on natural gas to Rs.
10.0 per MMBTU. Federal Government may initiate necessary legislation accordingly.
(2) The NFC recommended that the Federal Government and Provincial Governments should streamline
their tax collection systems to reduce leakages and increase their revenues through efforts to improve taxation in order to
achieve a 15% tax to GDP ratio by the terminal year i.e. 2014-15. Provinces would initiate steps to effectively tax the
agriculture and real estate sector. Federal Government and Provincial Governments may take necessary administrative
and legislative steps accordingly.
(3) Federal government and Provincial Governments would develop and enforce mechanism for maintaining
fiscal discipline at the Federal and Provincial levels through legislative and administrative measures.
(4) The Federal Government may assist the Provinces through specific grants in times of unforeseen
calamities.
(5) The meetings of the NFC may be convened regularly on a quarterly basis to monitor implementation of
the award in letter and spirit.
10. Repeal.- The Distribution of Revenues and Grant-in-Aid Order, 1997 (P.O.No.1 of 1997), and the
Distribution of Revenues and Grants-in-Aid, Order, 2010. (P.O. 4 of 2010) are hereby repealed.
ASIF ALI ZARDARI
PresidentPage 40
5.2 Distribution of Revenues and Grants-in-Aid Order, 2010 (President's Order No. 5 of 2010) was slightly amended
through President's Order No.6 of 2015, which is reproduced as under;
PRESIDENT'S ORDER NO.6 OF 2015
AN
ORDER
To amend Distribution of Revenues and Grants-in-Aid Order, 2010 (President's Order
No.5 of 2010)
Whereas it is expedient to amend the Distribution of Revenues and Grants-in-Aid Order, 2010 (P.O. No. 5 of
2010) for the purpose hereinafter appearing.
Now therefore in pursuance of clause (6) read with clause (7) of Article 16 of the Constitution of the Islamic
Republic of Pakistan, the President is pleased to make the following Order:-
1. Short title and commencement: (1)This Order may be called the Distribution of Revenues and Grants-in-
Aid (Amendment) Order 2015.
(2) It shall come into force on the first day of July 2015.
(3) It will remain in force till further orders.
2. Substitution of Article-4(3) P.O No.5 of 2010: In the Distribution of Revenues and Grants-in-Aid Order,
2010 (P.O. No. 5 of 2010) for Article 4(3) the following shall be substituted;
3. The Federal Government shall guarantee that Balochistan Province shall receive the projected sum of
eighty-three billion rupees from the provincial share in the net proceeds of divisible pool taxes in the first year of the Award
and any shortfall in this amount shall be made up by the Federal Government from its own resources. This arrangement
for Balochistan shall remain protected throughout Award period based on annual budgetary projections.
MAMNOON HUSSAIN
PresidentPage 41
5.3 The following table shows the estimated transfers to the provincial governments on account of their share in
Federal Taxes and by straight transfers during the year 2019-20 and 2020-21;
TABLE 33
Provincial Share in Revenue Receipts
2019-20 (Budget)
(Rs. In Million)
Object *Khyber
Description Balochistan Punjab Sindh Total
Code Pakhtunkhwa
Divisible Taxes (A) 281,229.722 507,655.096 1,603,868.836 761,016.234 3,153,769.888
B01108 Taxes on Income 105,121.681 189,388.996 598,349.375 283,909.493 1,176,769.545
B01809 Capital Value Tax 199.531 359.478 1,135.721 538.886 2,233.616
B02303 Sales Tax excl. GST on 107,737.935 194,253.380 613,717.750 291,201.600 1,206,910.665
B02382 services
B02383
B02408 Federal Excise (Net of Gas) 17,845.620 32,150.971 101,576.720 48,196.917 199,770.228
B02503
B02170 Customs Duties 50,324.955 91,502.271 289,089.270 137,169.338 568,085.834
Straight Transfers (B) 13,753.681 25,606.400 7,495.572 53,900.137 100,755.790
Gas Development Surcharge 0.000 1,693.879 572.487 7,533.634 9,800.000
C03904
C03908 Royalty on Natural Gas 10,834.027 7,713.472 2,425.882 29,653.889 50,627.270
C03907 Royalty on Crude Oil 0.000 13,493.052 3,780.007 6,906.040 24,179.099
Excise Duty on Natural Gas 2,919.654 2,705.997 717.196 9,806.574 16,149.421
B03044
Total (A+B) 294,983.403 533,261.496 1,611,364.408 814,916.371 3,254,525.678
* inclusive of 1% War on terrorPage 42
TABLE 34
Provincial Share in Revenue Receipts
2019-20 (Revised)
(Rs. In Million)
Object
*Khyber
Code Description Balochistan Punjab Sindh Total
Pakhtunkhwa
Divisible Taxes (A) 281,229.722 356,856.124 1,127,439.516 534,956.322 2,300,481.684
B01108 Taxes on Income 105,121.681 147,823.639 467,029.149 221,599.645 941,574.114
B01809 Capital Value Tax 199.531 222.886 704.178 334.123 1,460.718
B02303 Sales Tax excl. GST on 107,737.935 131,515.514 415,505.795 197,152.440 851,911.684
B02382 services
B02383
B02408 Federal Excise (Net of Gas) 17,845.620 27,596.816 87,188.475 41,369.870 174,000.781
B02503
B02170 Customs Duties 50,324.955 49,697.269 157,011.919 74,500.244 331,534.387
Straight Transfers (B) 13,984.592 22,241.133 8,007.621 57,365.057 101,598.403
C03904 Gas Development Surcharge 935.432 (2,103.302) 1,363.466 9,603.414 9,799.010
C03908 Royalty on Natural Gas 11,203.585 9,827.783 1,677.672 31,240.440 53,949.480
C03907 Royalty on Crude Oil 4.155 12,618.392 4,528.423 7,974.623 25,125.593
B03044 Excise Duty on Natural Gas 1,841.420 1,898.260 438.060 8,546.580 12,724.320
Total (A+B) 295,214.314 379,097.257 1,135,447.137 592,321.379 2,402,080.087
* inclusive of 1% War on terrorPage 43
TABLE 35
Provincial Share in Revenue Receipts
2020-21 (Budget)
(Rs. In Million)
Object
*Khyber
Code Description Balochistan Punjab Sindh Total
Pakhtunkhwa
Divisible Taxes (A) 251,663.644 453,401.470 1,432,461.716 679,685.643 2,817,212.473
B01108 Taxes on Income 103,283.548 186,077.384 587,886.775 278,945.117 1,156,192.824
B01809 Capital Value Tax 155.782 280.660 886.709 420.733 1,743.884
B02303 Sales Tax excl. GST on 98,166.971 176,859.271 558,763.375 265,126.417 1,098,916.034
B02382 services
B02383
B02408 Federal Excise (Net of Gas) 17,723.494 31,930.946 100,881.582 47,867.083 198,403.105
B02503
B02170 Customs Duties 32,333.849 58,253.209 184,043.275 87,326.293 361,956.626
Straight Transfers (B) 13,390.396 24,117.088 6,654.453 62,344.330 106,506.267
C03904 Gas Development Surcharge - 1,431.477 (96.689) 14,531.825 15,866.613
C03908 Royalty on Natural Gas 11,189.669 9,120.233 1,628.711 30,797.402 52,736.015
C03907 Royalty on Crude Oil 4.547 11,451.878 4,615.771 7,126.903 23,199.099
B03044 Excise Duty on Natural Gas 2,196.180 2,113.500 506.660 9,888.200 14,704.540
Total (A+B) 265,054.040 477,518.558 1,439,116.169 742,029.973 2,923,718.740
C Estimated tax refund recovery 50,000.000
total (A+B)-C 2,873,718.740
* inclusive of 1% War on terrorPage 44
Chapter 6: CAPITAL RECEIPTS
6.1 Capital receipts comprise Recoveries of Loans and Advances from Provinces and other entities and Public Debt
which includes Permanent Debt and Floating Debt. The net capital receipts so realized by the federal government
generally constitute the available resources for the financing of its Public Sector Development Programme. External
finances and un-funded debt (primarily made up of the various instruments available under the National Savings
Schemes) also fall under the category of Capital Receipts, however they are covered under separate chapters of this
publication.
6.2 The following table indicates the position of Capital receipts for 2019-20 (budget and revised) and 2020-21
(budget).
TABLE 36
Capital Receipts
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
A. Capital Receipts (I+II) 766,197.741 755,578.650 1,326,052.262
I. Recoveries of Loans and Advances 183,520.370 131,713.099 147,167.262
E021 Provinces 79,370.744 84,666.062 89,024.878
E022-27 PSEs and Others 104,149.626 47,047.037 58,142.384
II. Public Debt 582,677.371 623,865.551 1,178,885.000
E031 Domestic Debt (Permanent) 282,740.370 468,732.150 778,948.000
E033 Foreign Currency Debt (Permanent) (63.000) (41.600) (63.000)
E032 Floating Debt (Net) 300,000.001 155,175.001 400,000.000
B. Public Account 250,754.080 421,274.390 215,618.380
Deferred Liabilities (Net) 278,628.080 430,341.390 227,278.380
Deposits and Reserves (27,874.000) (9,067.000) (11,660.000)
C. Total (A+B) 1,016,951.821 1,176,853.040 1,541,670.642
D. Disbursements 185,291.383 81,644.441 262,184.600
Federal Govt Misc investments 15,468.198 6,470.132 11,717.200
Loans and Advances 61,523.185 61,452.309 66,776.000
Repayment of Short Term Credits 108,300.000 13,722.000 183,691.400
Net Capital Receipts (C-D) 831,660.438 1,095,208.599 1,279,486.042Page 45
6.3 Recovery of Loans and Advances
6.3.1 The recovery of principal amount of loans and advances from provinces, public sector enterprises, financial and non-
financial institutions is reflected in this section.
6.3.2 The estimates of recoveries of loans and advances are given below :
TABLE 37
Recovery of Loans and Advances
(Provinces)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
Province-Wise Break-up
E021 Punjab 44,050.291 47,155.167 49,984.305
Cash Loans 1,822.179 1,822.179 1505.237
Foreign Loans 42,228.112 45,332.988 48479.068
Sindh 18,631.372 19,847.733 22,566.029
Cash Loans 1,159.914 1,159.914 1,310.457
Foreign Loans 17,471.458 18,687.819 21,255.572
Khyber Pakhtunkhwa 9,449.315 9,925.918 10,633.716
Cash Loans - - -
Foreign Loans 9,449.315 9,925.918 10,633.716
Balochistan 7,239.766 7,737.244 5,840.828
Cash Loans - - 4.985
Foreign Loans 7,239.766 7,737.244 5,835.843
Total (Recovery of Loans) 79,370.744 84,666.062 89,024.878
Loan-wise Break-up
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E021 Cash Loans 2,982.093 2,982.093 2,820.679
Punjab 1,822.18 1,822.179 1505.237
Sindh 1,159.91 1,159.914 1,310.457
Khyber Pakhtoonkhwa - - -
Balochistan - - 4.985
Foreign Loans 76,388.651 81,683.969 86,204.199
Punjab 42,228.11 45,332.988 48,479.068
Sindh 17,471.46 18,687.819 21,255.572
Khyber Pakhtoonkhwa 9,449.32 9,925.918 10,633.716
Balochistan 7,239.77 7,737.244 5,835.843
Total - Loans 79,370.744 84,666.062 89,024.878Page 46
TABLE 38
Recovery of Loans and Advances
(Local Bodies)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E022 Cash Loans 13,688.961 13,688.962 15,523.024
PTVC 58.753 58.753 58.753
Lahore Garment City 14.906 14.906 16.628
NHA 13,306.677 13,306.678 14,520.963
PBC 84.718 84.718 83.947
PIA 62.500 62.500 -
Capital Development Authority - - 121.965
State Engineering Corporation - - 0.159
Pakistant Machine Tool - - 5.391
Printing Corporation of Pakistan 161.407 161.407 172.092
Pakistan Steel Mil - - 543.126
E022 Foreign Loans 39,160.115 33,504.616 35,314.007
Karachi Port Trust 782.873 813.866 860.354
NHA 9,535.158 10,601.260 12,336.725
GIK Institute 110.083 116.119 3.891
SSGC - - 1.501
Shaukat Khanum Memorial Trust 9.412 10.280 10.873
NEPRA 0.751 0.751 0.751
OGRA 0.623 0.623 0.623
Chashma Nuclear Power Plant 28,721.215 21,961.717 22,099.289
Total (Local Bodies) 52,849.076 47,193.578 50,837.031
TABLE 39
Recovery of Loans and Advances
(Financial Institutions)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E023 Foreign Loans 97.314 97.314 97.314
IDBP 97.314 97.314 97.314
Total - Financial Institutions 97.314 97.314 97.314Page 47
TABLE 40
Recovery of Loans and Advances
(Non-Financial Institutions)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E024 Power Sector
Cash Loans 1,897.068 1,892.083 2,379.250
WAPDA (power wing) 1080.404 1,080.404 1,458.626
WAPDA (water wing) 39.456 34.471 38.384
TESCO 19.340 19.340 21.940
QESCO 23.868 23.868 39.928
MEPCO 14.034 14.034 15.850
GENCO-I 19.121 19.121 22.550
GENCO-II 167.348 167.348 190.227
GENCO-III 101.842 101.842 114.129
GENCO-IV 1.963 1.963 2.315
CPPA 40.100 40.100 40.100
NJHP 389.592 389.592 435.201
NTDC -
E024 Foreign Loans 32,115.632 37,918.180 34,108.759
WAPDA (Power Wing) 8,865.012 12,346.623 7747.874
WAPDA (water wing) 73.554 87.768 87.768
TESCO 0.149 0.110 -
LESCO 597.436 597.436 597.436
HESCO 619.355 651.227 651.227
PESCO 406.765 440.771 442.230
QESCO 676.672 676.672 676.672
GEPCO 345.792 345.792 345.792
IESCO 724.614 800.405 800.727
FESCO 369.205 375.607 375.607
MEPCO 865.533 875.186 875.186
NTDC 6,831.305 7,800.726 8,519.299
NJHP 11,714.544 12,894.161 12,963.245
PEPCO 25.696 25.696 25.696
Total - Power Sector (A) 34,012.700 39,810.263 36,488.009
E024 Autonomous Bodies/Corporations
Foreign Loans 5,128.739 5,163.061 5,143.073
Pakistan Railways 1,687.172 1,721.494 1701.506
Karachi Fish Harbour Authority 26.584 26.584 26.584
PPAF 1,279.596 1,279.596 1,279.596
ERRA 2,103.531 2,103.531 2,103.531
TEVTA 31.856 31.856 31.856
Total Autonomous Bodies/Corporations (B) 5,128.739 5,163.061 5,143.073
Total Non-Financial Institutions (A+B) 39,141.439 44,973.324 41,631.082Page 48
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E025 Government Servants
Cantt/Garrison Educational Institutions 51.944 50.200 52.710
Office of the AGPR, Isb
3,036.954 3,262.790 3,589.069
AGPR sub-office, Lahore
800.076 1,304.108 1,564.930
AGPR sub-office, Karachi
740.774 814.849 896.334
AGPR sub-office,Peshawr
374.690 1,190.851 1,309.936
AGPR sub-office, Quetta
150.340 205.060 215.445
AGPR sub-office, Gilgit
270.650 148.433 163.276
Defence
556.226 636.404 642.404
Pakistan Post Office Deptt
280.400 293.000 299.600
Pak PWD
59.600 73.029 73.500
Pakistan Mint
17.560 20.790 23.700
CAO (Ministry of Foreign Affairs)
87.784 120.671 139.778
Central Dte of National Savings
124.382 136.639 137.554
Geological Survey of Pakistan
35.984 25.885 28.450
Special Communication Organization
14.659 11.424 12.567
National Tariff Commission 8.137 9.066 9.973
NDMA 0.412 - 0.412
Total Government Servants 6,610.572 8,303.199 9,159.638
OthersE027
Cash Loans- Govt of AJK
4,099.281 4,621.782 5,123.977
Foreign Loans-Govt of AJK
1,340.934 1,848.405 2,279.407
Foreign Loans-Govt of Gilgit,-Baltistan
- - 2.613
Cash Loans - PNRA
11.010 9.435 11.322
Total - Others 5,451.225 6,479.622 7,417.319
Total Recovery Cash Loans (PSEs) 26,306.892 28,515.461 32,197.211
Total Recovery Foreign Loans (PSEs ) 77,842.734 78,531.576 76,945.173
Total (PSEs ) 104,149.626 107,047.037 109,142.384
Estimated Shortfall - 60,000.000 51,000.000
Total PSEs Net 104,149.626 47,047.037 58,142.384
Total Provinces 79,370.744 84,666.062 89,024.878
Grand Total - Recovery of Loans 183,520.370 131,713.099 147,167.262Page 49
6.4 Public Debt
6.4.1 Public Debt of the Federal Government is classified into two basic categories:
(i) Domestic debt, which includes permanent debt, floating debt and unfunded debt; and
(ii) Foreign currency debt, which includes long, medium and short term debt.
6.4.2 Domestic Debt (Permanent)
The main features of securities through which domestic debt (permanent) is raised are given below:
6.4.2.1 Pakistan Investment Bonds:
This security having maturity period of 2, 3, 5, 7, 10, 15, 20 and 30 years is in operation since 2000. Against the budgeted
receipt of Rs. 200,000.0 million for the year 2019-20, the revised estimates for the year 2019-20 have been worked out at
Rs. 410,136.8 million whereas the budget estimates for the year 2020-21 are estimated at Rs. 400,000.0 million.
6.4.2.2 Government Ijara Sukuk Bonds:
The Government of Pakistan Ijara Sukuk Bonds are issued through Pakistan Domestic Sukuk Company Limited. The
Sukuk are not redeemable before maturity. The profit on the Sukuk is payable bi-annually on rental rate to be announced
by State Bank of Pakistan. Against the budget estimates of Rs. 8,993.0 for the year 2019-20, the revised estimates have
been projected at Rs. 228,993.0 million. The budget estimates for the year 2020-21 are estimated at Rs. 450,000.0 million.
6.4.2.3 National Prize Bonds:
These are of bearer type non-terminable securities freely en-cashable and transferable by delivery. These are issued in
denomination of Rs.100/-, Rs.200/-, Rs.750/-, Rs.1500/-, Rs.7500/-, Rs.15000/-, Rs.25,000/- and Rs.40,000/-. Against the
budgeted receipt of Rs. 70,747.370 million for the year 2019-20, the revised estimates for the year 2019-20 are kept at
Rs. 181,967.060 million. Budget estimates for the year 2020-21 are estimated at Rs. 85,181.050 million.
6.4.2.4 Premium Prize Bonds (Registered):
Premium Prize Bonds (Registered) of Rs.40,000/- denomination have been launched. These bonds offer biannual profit
payment on completed period of six months as well as prize money on quarterly draws. The bond shall be registered
against the name of purchaser. The ownership of bond is transferable from one person to another person through an
application on prescribed format.Page 50
6.4.2.5 The net receipts from domestic debt (permanent) during the year 2019-2020 (budget & revised) and 2020-2021
(budget) are estimated as under:-
TABLE 41
Public Debt
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E031 Domestic Debt (Permanent) 282,740.370 468,732.150 778,948.000
Pakistan Investment Bonds (Non-Bank) 200,000.000 410,136.800 400,000.000
Government Ijara Sukuk Bonds 8,993.000 228,994.000 450,000.000
National Prize Bonds 70,747.370 (181,967.000) (85,181.000)
Premium Prize Bonds (Registered) 3,000.000 15,390.350 15,000.000
Pakistan Bano Certificte (3 years) - (170.000) (198.000)
Pakistan Bano Certificte (5 years) - (220.000) (530.000)
FADRA - (3,432.000) (143.000)
6.4.3 Foreign Currency Debt (Permanent)
It includes the following securities:
6.4.3.1 Foreign Exchange Bearer Certificates (FEBCs):
Budget estimates in case of repayment of Foreign Exchange Bearer Certificates for financial year 2019-20 were estimated
at Rs. -5.000 million. Revised estimates for the year 2019-20 are projected at Rs. -0.500 million whereas budget estimates
for financial year 2020-21 have been kept at Rs. -5.000 million.
6.4.3.2 Foreign Currency Bearer Certificates (FCBCs):
Repayment on account of Foreign Currency Bearer Certificates in the budget estimates for the year 2019-20 was
estimated at Rs. -5.000 million. Revised estimates for the year 2019-20 and budget estimates for the year 2020-21 on
account of repayment have been kept at Rs. -1.000 million and Rs.-5.000 million respectively. These certificates are in
US$ and Pound Sterling. Profit is payable half yearly at floating rates which is not liable to income tax. Investment in these
certificates is exempt from Wealth Tax and compulsory deduction of Zakat.
6.4.3.3 US Dollar Bearer Certificates (DBCs):
This security was introduced in 1991 and discontinued on 17th November, 1994. Against the repayment of Rs.-3.000
million in the budget estimate 2019-20, revised estimates 2019-20 and budget estimates for the year 2020-21 have been
kept at Rs. -0.100 million and Rs. - 3.000 million respectively.
6.4.3.4 Special US Dollar Bonds:
These bonds were issued under Special US Dollar Bonds Rules, 1998 to the Foreign Currency Accounts holders or
Foreign Currency Certificates holders with scheduled banks or non-bank financial institutions out of their foreign currency
deposits. Against the repayment of Rs. -50.000 million provided in budget estimates 2019-20, the repayment on account
of these bonds in revised estimates 2019-20 has been estimated at Rs.-40.000 million. Budget estimates for the year 2020-
21 are estimated at Rs.-50.000 million. The estimates of foreign currency debt (permanent) are tabulated below:-
TABLE 42
Public Debt (Foreign Currency Permanent)
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E031 Foreign Currency Debt (Permanent) (63.000) (41.600) (63.000)
Foreign Exchange Bearer Certificates (FEBCs) (5.000) (0.500) (5.000)
Foreign Currency Bearer Certificates (FCBCs) (5.000) (1.000) (5.000)
US Dollar Bearer Certificates (DBCs) (3.000) (0.100) (3.000)
Special US Dollar Bonds (50.000) (40.000) (50.000)Page 51
6.4.4 Floating Debt
The term "floating debt" is applied to borrowing of purely temporary nature with currency of not more than twelve months.
Market Related Treasury Bills, National Prize Bonds and Bai-Maujjal Ijara Sukuks are included in this category.
6.4.4.1 Market Related Treasury Bills (Auction):
These reflect non-bank borrowing of the Federal Government.
6.4.4.2 Government Bai-Muajjal IjaraSukuk :
Government Bai-Maujjal Sukuk are issued through auction for a maturity period of one year from date of issue. Bai-Maujjal
Ijara Sukuk shall be repaid only on maturity. The profit earned on Bai-Maujjal Ijara Sukuk shall be liable to income tax.
Withholding tax shall be deducted at source at the applicable rate. The estimates of receipts from floating debt during the
year 2019-20 (revised) and 2020-21 (budget) are as under:-
TABLE 43
Floating Debt
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
E032 Floating Debt
A. Market Treasury Bills through Auction (Non-Bank)
Receipts 4,484,054.500 13,546,175.000 9,401,000.000
Repayments 4,184,054.500 13,391,000.000 9,001,000.000
Net (A) 300,000.000 155,175.000 400,000.000
B. Govt Bai-Muajjal Ijara Sukuk 0.001 0.001 0.0
Net Total Floating Debt (A+B) 300,000.001 155,175.001 400,000.000Page 52
Chapter 7: PUBLIC ACCOUNT RECEIPTS 7.1 Article 78(1) of the Constitution of Islamic Republic of Pakistan provides that all revenues received by the Federal Government, all loans raised by that Government and all moneys received by it in repayment of loan, shall form part of the Federal Consolidated Fund. Besides, Article 78(2) provides that all other moneys received by or on behalf of the Federal Government shall be credited to the Public Account of the Federation. Public Account largely comprises money kept by the Government as a trust, which may be repaid on demand subject to such terms and conditions as prescribed in this regard. 7.2 Public Account Receipts may be categorized as Deferred Liabilities and Deposit Receipts. 7.3 Deferred Liabilities These receipts represent the net proceeds of various savings schemes launched by the Government. Brief introduction of each saving scheme is given below. 7.3.1 Defence Savings Certificates 7.3.1.1 This is a ten years scheme. However, the investment can be encashed at any time. The rate of return on Defence Savings Certificates has been linked with the yield of Pakistan Investment Bonds of ten years maturity. The existing rate on this scheme is 8.54 % p.a. on maturity. Withholding tax is deducted from the profit payment. Apart from individuals, institutions may invest their individuals’ funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc. in this scheme. 7.3.2 Special Savings Certificates/Accounts Special Savings Certificates (Registered/Accounts) is a three years scheme with profit payable on six monthly basis. They rate of return on Speical Savings Certificats/Accounts has been linked with the yield of Pakistan Invetment Bonds of three years maturity. The existing rate of profit in this scheme is 8.00% per annum for first two fifth profits and 8.80% for the last sixth profit. Withholding tax is deducted from the profit payment. Apart from individuals, institutions may invest their individucals' funds such as pension, gratuity, superannuation, contributory provident funds and trustis etc. in this scheme.
Page 53
7.3.3 Regular Income Certificates
This scheme was introduced on 2-2-1993 to ensure payment of income on monthly basis. The rate of return on
Regular Savings Certificates has been linked with the yield of Pakistan Investment Bonds of five years maturity.
The existing profit on this scheme is 8.28% per annum. The profit in the scheme is subject to withholding tax
and the investment is exempt from compulsory deduction of Zakat at source. Apart from individuals, institutions
may invest their individuals’ funds such as pension, gratuity, superannuation, contributory provident funds and
trusts etc. in this scheme. Premature encashment on these certificates carry service charges as under:-
(i) if encashed before completion of one year
from the date of issue @ 2% of face value
(ii) Before two years @ 1.50% of face value
(iii) Before three years @ 1% of face value
(iv) Before four years @ 0.5% of face value
7.3.4 Mahana Amdani Account
It is a five years scheme in which only individuals can invest from Rs.500/- to Rs.5000/- each month
consecutively for five years and thereafter, the return was paid on monthly basis equal to the amount of
monthly deposit till the withdrawal of accumulated principal amount. However, the account holders who opened
accounts on or after 1.7.2000 and 1.7.2002 were required to deposit monthly installment for six years and
seven years respectively to get monthly profit equal to the amount of monthly deposit so long as the account is
not closed. The return upto Rs.1000/- is tax free. Zakat is deducted on principal value at the time of payment of
return if declaration in this regard is not filed. However, Mahana Amdani Account Scheme has been
discontinued after 17th May, 2003.Page 54
7.3.5 Savings Accounts This is the oldest savings scheme in operation which provides profit on non-chequing accounts. Zakat is deducted @ 2.50% on credit balance on valuation date each year if declaration in this regard is not filed. The existing profit on savings account is 5.75 % p.a. Withholding tax is deducted from the profit payment. Apart from individuals, institutions may invest their individuals’ funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc. in this scheme. 7.3.6 Pensioners’ Benefit Accounts This scheme has been launched with effect from 20-1-2003 to provide incentives to the retired officials of the Federal Government, Provincial Governments, Azad Government of the State of Jammu and Kashmir, Armed Forces, Semi Governments and autonomous bodies and in case of death the pensioner’s eligible member of the family. Only one account can be opened in the National Savings Centre with a minimum deposit of rupees ten thousand and in multiple of one thousand with the facility of seven subsequent deposits subject to the maximum limit of five million rupees. It is a ten years scheme and profit is payable on completion of each period of one month reckoned from the date of opening of an account till maturity or encashment whichever is earlier. The existing rate of profit on this scheme is 10.32 % per annum. Premature encashment before completion of one, two, three and four years carries service charges at the rate of 1.00%, 0.75%, 0.50% and 0.25% of principal amount respectively. Profit accrued from this scheme is exempt from compulsory deduction of withholding tax and Zakat. The scheme has been made more attractive as any upward revision in rate of profit notified after 9.3.2009 shall also be applicable to existing accounts holders whereas downward revision shall apply to fresh investment only. 7.3.7 Bahbood Savings Certificates Initially this scheme was introduced exclusively for widows to cater for their needs with monthly profit payment facility. The scheme was further extended to the aged persons 60 years or above. The existing rate of profit on this scheme is 10.32 % per annum. The maximum investment limit in this scheme is five million rupees and ten million rupees for
Page 55
joint holders. It is only a compensatory package to enable widows and senior citizens to supplement their income to lead a
respectable life. Service charges at the rate of 1.00%, 0.75%, 0.50% and 0.25% of the face value are deducted if
certificates are encashed before completion of one, two, three and four years respectively. Profit accrued from this
scheme is exempt from compulsory deduction of withholding tax and Zakat. The scheme has been made more attractive
as any upward revision in rate of profit notified after 9.3.2009 shall also be applicable to existing certificate holders
whereas downward revision shall apply to fresh investment only.
7.3.8 Shuhada's Family Welfare Account (SFWA):
A new savings scheme namely Shuhada Family Welfare Account (SFWA), for the welfare of eligible family members of
Shuhada (martyrs) has been launched on 11th May, 2018. The eligible family members can open the SFWA account in
any National Savings Centre scross Pakistan after fulfillment of required documentation. Preferential profit in line with the
existing welfare product i.e., Bahbood Savings Certificate and Pensioner Benefit Account shall be paid to the investor of
SFWA on monthly basis. Current profit rate is 10.32%. Profit shall be exempted from Withholding Tax and compulsory
deduction of Zakat.
7.3.9 The estimates of receipts are tabulated on the following pages.
TABLE 44
Deferred Liabilities
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
G03 Deferred Liabilities (A+B+C) 278,628.080 430,341.390 227,278.380
Provident Fund (A) 3,000.000 3,500.000 4,000.000
Saving/Deposit Acctt/Certificates (B) 271,928.080 427,641.390 225,278.380
Saving Bank Accounts 12,495.560 2,030.410 2,022.160
Khas Deposit Accounts (0.700) (5.000) (5.000)
Mahana Amdani Accounts (70.000) (70.000) (70.000)
Pensioners' Benefit Accounts 29,555.900 36,551.670 24,043.550
Defence Saving Certificates 38,890.270 92,945.060 25916.120
Bahbood Savings Certificates 84,650.580 93,534.690 42,194.220
National Deposit Certificates (1.000) (0.800) (1.000)
Khas Deposit Certificates (0.700) (0.700) (0.700)
Special Savings Certificates (Registered) 10,762.300 57,894.960 33,554.970
Special Savings Accounts (Term Deposit) 12,283.300 63,224.200 36,643.220
Shuhda Welfare Account 98.000 27.000 18.000
Regular Income Certificates 65,264.570 73,509.900 30,962.84
Short Term Savings Certificates 1,000.000 8,000.000 3,000.000
New Savings Schemes 17,000.000 - 27,000.000
Postal Life Insurance Fund (C) 3,700.000 (800.000) (2,000.000)Page 56
7.4 Deposits and Reserves
7.4.1 The public account deposit receipts are broadly of two types known as (i) Reserve funds and (ii) Other deposits. The
reserve funds, falling in the category of renewal reserve and depreciation funds, are designed to meet the cost of renewal
and replacement of assets of the commercial departments and undertakings to which they relate. These are fed by annual
contribution from these departments and organizations, calculated either on commercial principle or on ad-hoc basis. The
expenditure on renewal and replacement in a year is initially booked as expenditure under the relevant capital head of
account but at the end of the year, it is transferred to the appropriate depreciation or renewal reserve fund per contra-
credit to the expenditure head.
7.4.2 Reserve funds and deposit accounts, other than the renewal reserve and depreciation funds, are intended to provide
for liabilities and requirements of funds for specific purposes for which they have been created. Like renewal reserve and
depreciation funds, these are fed by regular yearly payment or ad-hoc contributions from the current revenues. Such
transfers generally pass through the budget grant of the concerned Ministry or Division.
7.4.3 The reserve funds and deposit accounts in respect of which provision for contributions have been made in the
revised estimates for 2019-20 and budget estimates for 2020-21 are tabulated on the following pages.
TABLE 45
Deposits and Reserve Fund
(Rs. In Million)
Object 2019-20 2019-20 2020-21 Description
Code Budget Revised Budget
FGE BENEVOLENT FUNDS 3,871.494 3,896.964 4,091.812
G06
Civil
G06202 1,395.270 1,267.488 1,330.862
Defence
G06203 2,274.804 2,441.196 2,563.256
Pakistan Post Office Department
G06205 172.494 160.824 168.865
Pak PWD
G06206 7.272 6.936 7.283
National Saving
G06209 13.518 12.348 12.965
Pakistan Mint
G06210 3.276 3.060 3.213
Forest Department
G06211 - - -
Geological Survey of Pakistan
G06212 4.860 4.992 5.242
Pronvicial Govt./Employee B. Fund.
G06214 - 0.120 0.126Page 57
(Rs. In Million)
Object 2019-20 2019-20 2020-21
DescriptionCode Budget Revised Budget
GROUP INSURANCE FUNDS 1,097.820 601.836 631.927
G06401 PAK PWD 2.250 2.304 2.419
G06402 Foreign Office - - -
G06404 National Saving 3.384 2.976 3.125
G06405 Pakistan Mint - 0.144 0.151
G06406 Forest Department - 6.744 7.081
G06407 Geological Survey of Pakistan 1.908 1.884 1.978
G06408 Provincial Govt Employees B.Fund - 0.072 0.076
G06409 Civil 407.628 400.728 420.764
G06410 Defence 682.650 186.984 196.333
G06414 Provincial Govt Employees B.Fund - - -
OTHERS 440,787.850 539,766.881 560,269.663
G06304 Workers Welfare Fund 7,387.236 9,300.444 9765.466
G06308 Staff Welfare Fund Balochistan Police - 0.024 0.025
G06315 Judicial Officers Welfare Fund. - 0.756 0.794
G07101 Post Office Renewal Reserve Fund - 30.060 31.563
G07102 Post Office Welfare Fund 0.252 58.092 60.997
G07104 Fed. Govt. Empl. Group Insur. Fund 10.296 10.980 11.529
G07106 Pakistan Post Office Miscellaneous 173,165.526 179,290.620 188,255.151
G08117 Railways Reserve Fund 39,000.000 45,000.000 40,000.000
G08121 Railways Depreciation. Reserve Fund 6,115.000 4,166.186 4,920.616
G07106 PPO Miscelaneous - - -
G10101 Pak PWD Receipts & Collection Account 294.012 359.976 377.975
G10102 Foreign Office Receipts & Collection Account 7,530.606 2,723.556 2,859.734
G10104 Mint Receipt and Collection Account 52.398 125.976 132.275
G10106 Deposit Works of Survey of Pakistan 121.806 24.816 26.057
G10107 Deposits of Department of Minieral Development - 0.360 0.378
G10113 Pak PWD Deposits 7,129.206 21,606.096 22,686.401
G10304 Zakat Collection Account 3,808.170 2,089.992 2194.492
Special Deposit Fund for Army supplies-friendly
countriesG11201 0.036 - -
G11215 Revenue Deposits 11,756.016 948.492 995.917
G11216 Civil & Criminal court Deposits 12.996 17.256 18.119
G11217 Personal Deposits 19,433.322 38,725.776 40662.065
G11218 Forest Deposits - 0.012 0.013
G11220 Deposit in connection with Election 137.106 4.068 4.271
G11224 Deposits Accounts with Defence 3,118.356 3,577.608 3756.488
G11225 Deposits Accounts with AGPR 170.802 275.964 289.762
G11230 Special Remittances Deposits 1,526.202 1,026.876 1078.220Page 58
(Rs. In Million)
Object 2019-20 2019-20 2020-21
Description
Code Budget Revised Budget
G11237 Deposit local bodies to meet Claims of contractors - 0.432 0.454
Security deposit of supply cell
G11238 - - -
Security Deposits of Cashiers etc.
G11240 388.404 294.744 309.481
Defence Services Security Deposits.
G11255 1,956.960 1,968.012 2066.413
Defence Service Misc. Deposits.
G11256 144,729.738 206,706.144 217041.451
Security deposit of Private Co.
G11276 15.030 27.948 29.345
Contribution to Govt servants Housing Foundation
G11278 - 0.900 0.945 from its members
Withholding Tax on Profit from investment in NSCG11280 7,551.468 10,900.908 11445.953
Deposits on account of fee realized by PNACG11281 18.324 31.716 33.302
Security deposit of Firms/ContractorsG11290 137.214 30.984 32.533
P.M's Fund for Welfare & Relief for KashmirG12102 - 0.492 0.517
G12130 President's Relief Fund for Earthquake Victims 2005 - 0.144 0.151
PM's Special Fund for victims of Terrorism
G12135 - 0.744 0.781
PM Flood relief Fund 2010
G12140 7.344 0.120 0.126
PM Relief Fund for Thar 2014
G12150 2,459.034 3,472.488 3646.112
PM COVID-19 Pandemic Relief Fund 2020.
G12157 - 23.712 24.898
Pakistan Minorities Welfare Fund
G12205 - - -
Special Fund for Welfare & Uplift of Minorities
G12206 74.916 44.544 46.771
Federal Government Artists Welfare Fund
G12226 - 13.020 13.671
Export Development Fund
G12305 - - -
Reserve Fund for Exchange Risk on Foreign Loans
G12308 414.558 278.676 292.610
Pakistan Oil Seed Development Fund
G12412 155.430 144.516 151.742
Research & Development Fund
G12419 50.760 902.904 948.049
SCP Diamer Basha and Mohmand Dam Fund
G12421 - 23.124 24.280
Workers Children Education Fund
G12504 - 0.528 0.554
Education Welfare Fund
G12510 - 0.012 0.013
Fund for Urdu Science Board
G12612 - 2.520 2.646
Trust Interest Fund (Charitable Endowment)
G12712 - 3.252 3.415
Income Tax deduction from Salaries 7.254
G12713 20.004 21.004
Income Tax deduction from Contractors/Suppliers 74.952
G12714 79.836 83.828Page 59
(Rs. In Million)
Object 2019-20 2019-20 2020-21
DescriptionCode Budget Revised Budget
G12738 National Fund for Control of Drug Abuse 28.062 33.192 34.852
Federal Civil Servant's subscription to Services Book
G12741 Club 15.912 16.836 17.678
G12777 Sales Tax deduction special procedure, 2007 5.760 8.040 8.442
G12783 Universal Service Fund 101.556 3,428.328 3599.744
G13127 Grants and Tech. Assistance from US Government - 842.820 884.961
G13140 GSP Receipt and Collection Account 25.830 23.460 24.633
G14100 Pakistan Mint 1,800.000 1,077.795 1350.000
TOTAL 445,757.164 544,265.681 564,993.402
7.4.4 A brief description of the main deposits/reserve funds are given below.
7.4.4.1 Post Office Renewal Reserve Fund
7.4.4.1.1 The objective of establishing this reserve fund is to secure the payment of annual contribution from
general revenues, to provide funds to meet the actual cost of renewing and replacing assets. The fund also
bears the cost of relieving capital of the value of an asset, other than land, which is sold, abandoned or
otherwise disposed off without being replaced. The fund receives credit for an annual contribution from working
expenses of such amount fixed from time to time as a depreciation charge based on the life of assets as well
as sale proceeds of unserviceable materials, block value of dismantled assets etc.
7.4.4.2 Railways Depreciation Reserve Fund
7.4.4.2.1 The Railways Depreciation Reserve Fund provides for the cost of renewals and replacement of
assets as and when it becomes necessary. The Fund was to provide the amount of original cost of the assets
replaced and its scope was restricted to the replacement of complete units of certain classes of wasting assets.
With a view to providing safeguard against over capitalization, the entire cost of the replacement of an asset
including the improvement elements is charged to the Fund. Presently, the contribution to the fund is made by
adopting "Straight Line Method".Page 60
7.4.4.3 Railways Reserve Fund 7.4.4.3.1 The objective of establishing this Fund is to secure the payment of annual contribution of general revenues to provide, if necessary, for arrears of depreciation and for writing off capital and to strengthen the financial position of the Railways. The Fund was also used for temporary borrowings for the purposes of meeting the expenditure for which there was no provision or insufficient provision in the revenue budget. The receipts in this Fund consist of the surplus which remains out of the profit of Railways after payment to general revenues of the contribution fixed under the Convention. 7.4.4.4 Workers Welfare Fund 7.4.4.4.1 This Fund was created for provision of housing facilities and other amenities to industrial workers. Initial contribution of Rs.100 million was made by the federal government. Further contributions to the Fund are being made in the form of Workers Welfare Tax @ 2% per annum of the total assessable income of industrial units whose income is not less than Rs.100,000 and the amount transferred to the Fund from time to time, under clause (d) of Section 4 of the scheme set out in the schedule to the "Companies' Profit (Workers' Participation ) Act, 1968 (XII of 1968). All proceeds of the fund will initially be credited into the WWF Trust Fund and money from the fund for incurring expenditure on the defined/prescribed purposes will be withdrawn by submitting a proper sanction of competent authority to AGPR. However, the profit earned either from investment of Bank accounts and income from properties and assets will be credited direct in the WWF bank Account and the entire amount shall be treated as part of the "Workers Welfare Fund" and it shall be subject to audit. 7.4.4.5 Fund for Exchange Risk on Foreign Loans 7.4.4.5.1 The federal government pays the difference of exchange rate fluctuations on behalf of borrowers, and charges an exchange risk fee. The rate of this fee is different for different foreign currencies.
Page 61
Chapter 8: EXTERNAL RESOURCES
8.1 External Resources comprise Project Loans and Grants, Programme Loans and Other Loans. A brief description is
given as under;
8.1.1 The aim and objective of seeking foreign or external financial assistance may be stated as "promoting economic
and social development in the developing conuntries". It can also be defined as "Administered transfer of resources from a
donor country or international agency to the developing countries with a view to encourage economic growth". Foreign Aid
can be in the form of money, goods or technical assistance and can be between two (bilateral) or many (multilateral)
countries/ institutions.
8.1.2 Foreign aid is also looked for to meet both economy's balance of payments gap and investment gap. That is why
project and technical assistance alone are not sufficient. A large part of assistance is required in the shape of food and
commodity aid. Project assistance does not simply finance import of capital goods and related services but also meets a
part of local currency expenditure. Thus aid flow [project, programme and technical assistance] accompanied by
commodity improrts may generate counterpart local currency funds that are used to finance development expenditures.
8.1.3 In fact, many developing countries do not have sufficient funds to provide public goods such as education or
transportation systems or clean water and waste disposal facilities. Although such goods are essential for development,
their economic rate or return is so uncertain that provate incestors are unwilling to provide them on a large scale. Foreign
aid can substitute for private capital in those instances, providing the funds for investment in public goods that the
international capital market will not supply to those developing countries or would supply at a high interest rate. In principle
foreign aid could be a major source of capiital, fueling the growth of develop-ment countires and helping to promote
economic and human development.
8.1.4 Foreign aid is good only if it is the result of financing investment in appropriate productive capacity. Increasing
output allows debt and interest to tbe repaid. If the aid is used to finance current account deficits/ consumption, then there
is no net investment and resultatant future economic growth. Aid becomes a burden. It, therefore, entails an effective and
efficient external debt management with the objective to ensuring that the government's.
8.1.5 Foreign aid is useful if utilized productively and efficiently otherwise developing countries are likely to face financial
crises and are caught up in debt trap. The sequence of events could be as under:-
As debt service liabilities rise without corresponding increase in revenue, the government would need to
a)
set aside increasing share of budgetary resources for debt services;
The level of debt service would soon begin to affect routing government expenditure, often requiring
b)
additional borrowings to meet rising contractual payment obligations;Page 62
c) The country would slowly slide into debt trap. More and more borrowings would be required to
serv ife the accumulated debt, creating a vicious circle; and
d) The rising debt seevice obligations eventually lead to default i.e. the inability to honour principal
and interest payments commitments.
e) The default is generally followed by prolonged negotiations with the creaditors individually or
collectively [Paris Club/ London Club], leading to rescheduling/ restructuring/ write off the
external debt. The relief programs generally include reform conditions to redeem government
finances and put the exonomc back on the track.
8.2 Project Loans and Grants
8.2.1 Project loans and grants are received from specialized international financial institutions and friendly
countries with specific purpose falling under the following broad categories;
8.2.2 Project Loans & Grants for Public Sector Development Programme (PSDP)
8.2.2.3 Project loans and grants for PSDP are received for various projects being executed by Federal
Government, Provincial Government and various Autonomous bodies such as WAPDA, PEPCO, NHA etc.
8.2.3 Project Loans and Grants for Other than PSDP Projects
8.2.3.1 There are certain projects kept out of PSDP, which are executed by Federal Government, Provincial
Government and Autonomous bodies by receiving project loans and grants.
8.3 Programme Loans
8.3.1 Programme loans are provided for budgetary support and are linked/tied with achievement of specific
targets and goals. Programme Loans not only stabilize foreign exchange reserves but also generate rupee
counterpart to meet country's development needs.
8.4 Other Loans
Other loans comprise loans from Islamic Development Bank, Sovereign Bonds, Sukuk Bonds, etc received
from non-traditional sources generally by way of payment as well as for budgetary support.
8.5 The estimates of external resources for the year 2018-19(budget and revised) and 2019-20 (budget) are
tabulated on the following page.Page 63
TABLE 46
External Resources
(Rs. In Million)
2019-20 2019-20 2020-21 Description
Budget Revised Budget
(1) PSDP Projects (A+B) 239,120.844 247,233.739 238,820.200
A. Project Loans 211,170.821 214,743.833 218,152.830
Federal Projects
16,117.895 17,911.732 13,273.830
Autonomous Bodies
102,754.308 125,223.853 53,548.000
Provinces
92,298.618 71,608.248 151,331.000
B. Project Grants 27,950.023 32,489.906 20,667.370
Federal Projects
6,130.368 7,254.114 4,811.495
Autonomous Bodies
1,676.908 6,119.880 842.000
Provinces
20,142.747 19,115.912 15,013.875
(2) Projects (Outside Projects) 13,796.003 59,227.610 44,751.000
A. Project Loans 13,250.000 52,295.930 42,411.060
Federal Projects
13,250.000 51,510.800 42,411.060
Autonomous Bodies
- 781.600 -
Provinces
- 3.530 -
B. Project Grants 546.003 6,931.680 2,339.940
Federal Projects
546.003 5,083.080 1,803.690
Autonomous Bodies
- 1,692.600 -
Provinces
156.000 536.250
(3) Programme Loans
276,957.740 620,239.666 503,566.625
(4) Other Loans
2,502,450.000 1,346,218.600 1,435,780.500
Total External Resources (1+2+3+4) 3,032,324.587 2,272,919.615 2,222,918.325Page 64
TABLE 47
PROGRAMME LOANS
(Rs. In Million)
S.No. 2019-20 2019-20 2020-21 Description
Budget Revised Budget
ADB 171,819.000 366,982.200 154,275.000
1
AIIB - - 82,500.000
2
IBRD
2 15,100.000 16,893.240 22770
IDA
3 90,038.740 223,898.266 244021.625
KOREA
- 12,465.960 0
Total- Programme Loans 276,957.740 620,239.666 503,566.625
TABLE 48
OTHER LOANS
(Rs. In Million)
S.No. 2019-20 2019-20 2020-21
Description
Budget Revised Budget
IDB (Short-term) 165,000.000 127,116.600 165,000.000
1
Saudia Arabia (Short term)
2 480,000.000 138,840.000 165,000.000
Euro Bond/ International Sukuk
3 450,000.000 - 247,500.000
4 Commercial Banks 300,000.000 623,610.000 647,212.500
5 China Safe Deposits - - -
6 Eco. Trade Bank - - -
7 Budgetary Support from Friendly Countries 750,000.000 - -
8 IMF Loan for Budgetary Support 357,450.000 456,652.000 211,068.000
Total- Other Loans 2,502,450.000 1,346,218.600 1,435,780.500Page 65
Chapter 9: PRIVATIZATION PROCEEDS
9.1 Privatization in Pakistan is an important economic reform policy tool, for generating growth and to expunge
structural inefficiencies, by removing false barriers and opening up the economy to competition. The
Privatization program is part of the economic and structural reforms agenda of the Government of Pakistan that
along with deregulation and good governance, seeks to enhance the growth and productivity of Pakistan’s
economy, by harnessing the private sector as its engine of growth. It takes an integrated approach, towards
enhancing the private sector’s role and goes beyond the transfer of public assets to the private sector, by
identifying the linkages and role of regulation, good governance, market competition in fostering conditions that
provide incentives for the private sector to invest in providing goods and services efficiently.
9.2 The Privatization Commission Ordinance, 2000 was promulgated on 28th September, 2000 to establish
"Privatization Commission" for implementation of privatization policy of the federal government.
9.3 Section 16(2) of the said Ordinance envisages that the privatization proceeds shall be utilized by the
Federal Government as follows:-
(a) ten percent shall be used for poverty alleviation programmes ; and
(b) the remaining ninety percent for retirement of the Federal Government debt
9.4 The estimates of privatization proceeds are given below:
TABLE 49
Privatization Proceeds
(Rs. In Million)
2019-20 2019-20 2020-21Description
Budget Revised Budget
Privatization Proceeds 150,000.000 150,000.000 100,000.000
*subject to successful process