Govt’s Revenue collection remains at PKR 124 bn in January 2012 – Alfalah Securities Limited

Karachi: The Revenue Collection in the month of January, 2012 was recorded at a provisional PKR 124 bn, depicting a shortfall of PKR 16 bn against the target of PKR 140 bn.

According to Alfalah Securities Limited, overall, the revenue collection by the government stood at PKR 964 bn during the 7MFY12 as compared to PKR 770.1 bn in the corresponding period, registering a growth of 25.2%YoY. A significant increase in revenue collection is attributable to increasing inflation resulting in pushing up of prices in absolute terms (mainly POL prices), where the government has benefited from an increase in tax collection.

Even though the government has significantly increased its revenue collection during the 7MFY12 period, Alfalah Securities Limited expects the revenue target of PKR 1.952 trn in FY12 would be difficult to accomplish. Alfalah Securities Limited further expects the collection of revenue if sustained at the current pace would fail to provide a cover to the soaring budget deficit.