The federal government is gearing up for the upcoming fiscal year 2024-25 with a proposed budget of a whopping 16,500 billion rupees, sources in the Ministry of Finance revealed. This ambitious figure comes alongside a targeted fiscal deficit of 9,000 billion rupees and tax collection aim of 11,000 billion rupees.
While the targets have been agreed upon in principle between Pakistan and the International Monetary Fund (IMF), sources confirmed that they will be finalized during the official budgeting process. This crucial stage is set to kick off on Monday with the arrival of an IMF technical team for the second round of negotiations.
Upon his return from an overseas trip, caretaker Finance Minister Dr. ShamshadAkhtar will convene a meeting with the IMF team next week. This gathering will delve deep into the technical team’s recommendations, ensuring alignment with Pakistan’s economic goals. The proposed budget marks a significant increase compared to the current fiscal year’s revised estimates.
This surge reflects the government’s commitment to bolstering economic growth and tackling the ever-present challenge of fiscal deficit.
The ambitious tax collection target also underscores the government’s resolve to broaden its revenue base and reduce reliance on external borrowing. Achieving this objective will be critical in mitigating the fiscal burden and paving the way for sustainable economic development.—INP
