Ministry of Finance (MoF) sources told that the government of Pakistan had submitted its budget plans for the fiscal year 2023-24 (FY24) to the International Monetary Fund (IMF). The lender will consult with MoF officials to go over each proposed budget in detail.
The administration is eager to address fiscal concerns with the IMF and gain access to frozen cash before the end of the year. The Federal Board of Revenue (FBR) has received fresh revenue projections and plans for meeting debt repayment obligations for the upcoming fiscal year, which have been released by the Finance Ministry.
Budgetary provisions have also been proposed to cover interest and principal payments on outstanding debt. According to our sources, the government has informed the lender of its plans for defence spending in the coming fiscal year and has also recommended increasing cashflow from non-tax revenue.
Pakistan’s economy will have a breather
Islamabad has informed the lender of a fresh plan to increase income and profits in the current fiscal year through the State Bank of Pakistan (SBP) and the Petroleum Development Levy (PDL).
The Finance Ministry has revealed its strategy for increasing subsidies in FY24, despite recent criticism about unjustified aid to the general populace.
Despite continuing scepticism on GDP deficits for FY24, authorities have informed the IMF that they anticipate a deficit of 6.4% of GDP. Meanwhile, the lender has reportedly been notified that the federation and provinces’ budget deficit for FY24 is projected to be between 4.8 and 5% of GDP. The SBP and the IMF are now in talks about getting adequate finance to meet applicable requirements for fiscal expenditure in FY 2023-24.
According to official sources, the Finance Ministry is hoping to reach an agreement before the budget is finalised so that the pending Staff-Level Agreement may be submitted to the IMF Executive Board in a timely manner for approval. They also said that after the current programme is finished, negotiations for the next programme will begin in Pakistan.
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