India (Commonwealth Union)_ Pakistan’s Parliament granted approval to the budget for the fiscal year 2023-2024, amounting to Rs 14.48 trillion, following the inclusion of additional taxes as mandated by the International Monetary Fund (IMF). This condition was imposed in order to secure the remaining portion of a previously agreed bailout package for the financially distressed nation. The budget, which was unveiled recently, aims to achieve 3.5 percent GDP growth.
The budget initially targeted Rs 9,200 billion in tax collection; however, the target was increased by Rs 215 billion at the IMF’s insistence, resulting in a revised target of Rs 9,415 billion. Accordingly, the government concurred with the IMF’s demand to reduce its expenditures by Rs 85 billion. Further, Finance Minister Ishaq Dar highlighted the modifications made to the budget during a comprehensive three-day discussion with the Washington-based global lender.
Recently, Prime Minister Shehbaz Sharif engaged in discussions with IMF Managing Director Kristalina Georgieva during the Global Financing Summit in Paris, urging the release of the loan. Accordingly, it was reported that the IMF chief requested Sharif to address policy disagreements at the staff level within the international institution before obtaining the crucial loan necessary to stabilize Pakistan’s economy. With a $6.5 billion bailout package agreed upon in 2019 set to expire on June 30, Pakistan is facing significant challenges in securing $1.1 billion of unpaid funding. Failure to receive active support from the IMF raises concerns about Pakistan’s ability to meet external financing commitments.
Pakistan’s economy has been experiencing a prolonged period of decline, placing immense pressure on the impoverished masses. Further, unchecked inflation has also pushed a large portion of the population to struggle to meet their basic needs, exacerbating the plight of already vulnerable individuals.
