The IMF and Pakistan’s Budget: What’s Going On?
So, like, the International Monetary Fund (IMF) is all set to start some virtual discussions with Pakistan about their upcoming budget on Wednesday, which is today, folks! This is happening because the IMF mission’s trip to Islamabad got postponed due to some security issues in the region. Government sources spilled the tea to The Express Tribune about this delay on Tuesday.
The IMF team is supposed to come to Islamabad over the weekend, but they’re gonna start chatting about the budget today, May 14, and keep at it until May 16. I heard that they’re planning to have these discussions virtually, which is pretty cool, I guess. Oh, and get this – they even got a new Mission Chief, Iva Petrova, who’s gonna join in on the talks. She’s taking over from the old Mission Chief, Nathan Porter, who was pretty strict on policy stuff but not really into public appearances, you know what I mean?
Budget Shenanigans and IMF Demands
The Pakistani government is gearing up to drop their budget for the fiscal year 2025-26 on June 2, right before Eidul Azha kicks in. This will be Finance Minister Muhammad Aurangzeb’s second time doing this budget dance, and it’s gotta line up with whatever the IMF says during these talks. The IMF wants Pakistan to aim for a 1.6% GDP primary budget surplus, which means finding an extra Rs2 trillion on top of the usual expenses.
The Federal Board of Revenue (FBR) is being told to hit a tax target of 11% of the GDP or Rs14.3 trillion. That’s a pretty big ask, if you ask me. And get this – the government’s thinking of having a budget that’s less than Rs18 trillion, but they’re looking at a deficit of 5.1% of the GDP or Rs6.7 trillion after adding in the provinces’ cash surpluses. It’s like a budgeting rollercoaster up in here, folks!
