The Pakistani government is making changes to its budget for the fiscal year 2024 in an effort to secure a stalled rescue package with the International Monetary Fund (IMF). Finance Minister Ishaq Dar confirmed this during a session of the National Assembly. Detailed negotiations were held between Pakistan and the IMF to address pending reviews.
To reduce the fiscal deficit, the government plans to raise an extra Rs215 billion through new taxes and cut spending by Rs85 billion. These measures aim to improve the country’s financial situation. Prime Minister Shehbaz Sharif discussed these changes with IMF Managing Director Kristalina Georgieva during a global summit in Paris.
With the IMF’s Extended Fund Facility (EFF) set to expire on June 30, Pakistan has been working hard to secure $1.1 billion of funding that has been on hold since November. Finance Minister Dar provided more information, stating that after three days of negotiations, Pakistan has reached an agreement with the IMF regarding Rs215 billion in taxes. He assured that these taxes would not burden the poor and middle-income groups. Additionally, the government plans to reduce current expenditures by Rs85 billion without affecting the proposed development budget, salaries, and pensions of federal government employees.
