ISLAMABAD – Pakistan’s fiscal deficit has increased to 8.9 percent of theGross Domestic Product (GDP) in the fiscal year that ended in June, markinga three-decade high.
Last year’s fiscal deficit was recorded at 6.6 percent of the GDP. Thecountry has to increase its revenue by over 40 percent, as it is part ofthe conditions set for the $6 billion bailout by the International MonetaryFund (IMF).——————————
The high fiscal deficit does not bode well for the country’s prospects, asthe IMF’s first quarterly review of the bailout program is a few weeksaway. Missing the revenue target can influence the award of the secondtranche of the IMF bailout.
As per experts, Pakistan’s total revenue has declined by 20 percent in thelatest quarter as the non-tax revenue declined by 98 percent.
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*Via: Bloomberglink*
