The International Monetary Fund (IMF) has expressed that Pakistan’s approval of its fiscal year 2024-25 budget is insufficient and has urged further economic reforms.
The National Assembly approved Pakistan’s budget yesterday, totalling Rs18,870 billion. According to sources, the IMF has called for an increase in electricity and gas rates starting July 1, which aligns with NEPRA’s recommendations.
The IMF also seeks the elimination of tax exemptions and subsidies, which it considers vital for Pakistan’s economic recovery. Despite these demands, the IMF acknowledged the government’s significant steps in reducing tax breaks and subsidies in the budget.
The IMF delegation’s visit to Pakistan was scheduled for the end of June but has been tentatively rescheduled for the second week of July.
Read: Pakistan’s Budget 2024-25: Focus on Economic Stability Amid IMF Negotiations
The budget, amounting to Rs. 18.877 trillion, addresses the nation’s economic and social challenges through fiscal strategies and allocations.
Pakistan’s budget, amounting to Rs. 18.877 trillion, aims to address economic and social challenges via strategic fiscal planning and resource allocation.
During a visit from May 13 to May 23, the IMF delegation, led by Mission Chief Nathan Porter, engaged in thorough discussions on Pakistan’s economic progress, emphasizing the need for equitable tax collection from affluent sectors.
