The International Monetary Fund (IMF) has projected a significant fiscaldeficit for Pakistan in the fiscal year 2023-24, surpassing thegovernment’s set target by a considerable margin.
According to the IMF’s Fiscal Monitor Report for 2023, Pakistan’s estimateddeficit for the upcoming fiscal year is expected to reach Rs8,042 billion,whereas the government’s fiscal deficit target stands at Rs6,905 billion.
One alarming observation from the IMF report is that the country’sexpenditures are on track to nearly double its gross income, indicating asubstantial financial gap. This fiscal imbalance is anticipated to resultin a deficit that accounts for 7.6% of the Gross Domestic Product (GDP),which is notably higher than the government’s initial target of 6.5%.
Furthermore, the IMF report highlights that Pakistan’s debt ratio isprojected to remain at 72.2%, significantly exceeding the statutory targetof 60%. In contrast, the primary surplus for the year is expected to bearound Rs421 billion, aligning with the 0.4% target.
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In terms of economic indicators, the report predicts that the gross incomewill make up approximately 12.5% of the Gross Domestic Product, while thegross expenditure is estimated to account for a substantial 20.1% of thenation’s economic output. This data suggests that Pakistan faces achallenging fiscal landscape with a substantial deficit and rising debtlevels.