Another huge economic setback for Pakistan as projected by IMF
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The International Monetary Fund (IMF) has projected a significant fiscal deficit for Pakistan in the fiscal year 2023-24, surpassing the government's set target by a considerable margin.
According to the IMF's Fiscal Monitor Report for 2023, Pakistan's estimated deficit 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's expenditures are on track to nearly double its gross income, indicating a substantial financial gap. This fiscal imbalance is anticipated to result in 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 is projected to remain at 72.2%, significantly exceeding the statutory target of 60%. In contrast, the primary surplus for the year is expected to be around Rs421 billion, aligning with the 0.4% target.
In terms of economic indicators, the report predicts that the gross income will make up approximately 12.5% of the Gross Domestic Product, while the gross expenditure is estimated to account for a substantial 20.1% of the nation's economic output. This data suggests that Pakistan faces a challenging fiscal landscape with a substantial deficit and rising debt levels.
