3.5% GDP growth for 2023–2024 was deemed as a “realistic target” by Pakistan’s finance minister during the current budget presentation. Ishaq Dar stated it was a target that was “on the lower side” a day after proposing the budget for the nation under the economic crisis.
The budget was released as Islamabad requested additional bailout funds from the International Monetary Fund (IMF).The finance minister expressed “hope” that Pakistan would subside its upcoming IMF assessment, which would be the ninth for the nation.
Beyond that, he “didn’t think” it would subside reviews, he continued. The budget said that while the fiscal deficit was expected to be 6.54% of GDP in the upcoming fiscal year, Pakistan’s gross domestic product (GDP) was only expected to expand by 0.29%.
Ishaq Dar distinctly mentioned that there is “no more room” in the budget to cut the fiscal deficit objective by any further given the nation’s ongoing economic problems and the IMF’s stalled rescue funds.The finance minister added that the Shehbaz Sharif administration had no intentions of seeking haircuts on its debt or rescheduling payments to Paris Club creditors.
To access money under the IMF review, Pakistan must obtain solid and reliable financial pledges to bridge the $6 billion shortfall. It was previously claimed that Pakistan has only received commitments totaling $4 billion, mostly from Saudi Arabia and the United Arab Emirates.
