In a final bid to secure a long-awaited rescue package with the International Monetary Fund (IMF), the Pakistani government has made significant changes to its fiscal year 2023-2024 budget. The purpose of these changes is to address the concerns that have hindered progress and reach an agreement with the IMF, ultimately securing the much-needed loan.
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Finance Minister Ishaq Dar announced the implementation of these changes during his address to the National Assembly. He highlighted the detailed negotiations between Pakistan and the IMF as a last-ditch effort to complete the pending review. To tackle the fiscal deficit in the upcoming fiscal year, the government plans to introduce various measures. This includes raising Rs. 215 billion through new taxes and reducing spending by Rs. 85 billion.
Additionally, the Federal Board of Revenue (FBR) aims to increase tax collection from Rs. 9,200 billion to Rs. 9,415 billion. These measures will contribute to reducing the overall budget deficit by Rs. 300 billion.
Minister Ishaq Dar emphasized the importance of keeping the public informed about the progress made in the ninth review with the IMF. He acknowledged the concerns and uncertainties surrounding the outcome of the review but assured that talks with the IMF have been ongoing for three days. Once the conclusion is finalized, it will be published on the Finance Ministry’s website.
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Furthermore, Prime Minister Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva prior to his departure for London. During his visit to Paris, the Prime Minister had a series of meetings with IMF representatives, reaffirming Pakistan’s unwavering commitment to successfully completing the IMF program. He acknowledged the IMF’s understanding of Pakistan’s economic realities and stressed the country’s determination to fulfill all its commitments, aiming to overcome the severe economic challenges it faces.
These measures and negotiations highlight Pakistan’s efforts to address its economic challenges and secure the IMF loan, which will provide much-needed financial support and pave the way for future economic stability.
