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INTERVIEW-Pakistan seen meeting fiscal target in H1-cbanker

Wed Nov 11, 2009 2:14pm IST
 
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* Slippage in Q1 due to timing of expenditures-c.banker

* Tax-to-GDP ratio seen over 10 pct in 2009/10

* Current account deficit seen around 4 pct/GDP in 2009/10

By Martin Dokoupil

DUBAI, Nov 11 (Reuters) - Pakistan's government should meet its fiscal deficit target in the first six months of the 2009/10 fiscal year despite a slippage in the first quarter, the country's central bank governor said late on Tuesday.

Pakistan pledged to keep its fiscal deficit at 4.9 percent of gross domestic product in the 2009/10 fiscal year under a deal for aid from the International Monetary Fund.

The country's finance ministry is yet to report the figures for the first fiscal quarter, which started in July, with analysts expecting it to overshoot the target by 0.3 percent.

"All it (the slippage) has to do was the timing. Timing of certain fiscal expenditures," State Bank of Pakistan Governor Salim Raza told Reuters in an interview in the United Arab Emirates.   Continued...

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
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