Shahbaz Sharif, Prime Minister of Pakistan (File)
Islamabad: Pakistan has given it strong after taking loans from the International Monetary Fund (IMF). Pakistan has not met 3 out of 5 important economic targets set before the second review of the IMF’s $ 7 billion bailout package. This has brought IMF into tension.
Bellout package was given to overcome Kangali
The IMF gave this bailout package to take Pakistan out of bad economic conditions. According to the financial report released by the Finance Ministry, no provincial government of Pakistan was able to achieve a saving target of 1.2 trillion Pakistani rupees, as an unexpected increase in expenses has been recorded. Apart from this, the Federal Board of Revenue (FBR) has also failed to collect a total tax of Rs 12.3 trillion and to collect Rs 50 billion from retail traders under the Tajir Dost Yojana.
Which condition Pakistan fulfilled
Pakistan has achieved a primary budget surplus of only 2.4 trillion rupees. Thus he has fulfilled an important condition. This is being said to be better than the target set of IMF. It is claimed that Pakistan has shown primary surplus for the second consecutive year. According to the report, the central government tried to maintain control over the expenditure, but the failure of the provincial governments affected the goals of the IMF, which did not come under federal control.
How much fiscal deficit happened
Pakistan’s total fiscal deficit was 5.4% (6.2 trillion rupees) of GDP, below the target of 5.9% of the IMF. The IMF has laid about 50 conditions under the Bellout Package, some of which are reviewed on quarterly and annual basis and the approval of the next $ 1 billion installment depends on them. Although the government has shown improvement on some fronts, official figures show that the total net income of the Central Government is less than the needs of only two items like defense and interest payment. Other expenses are made by borrowing.
280 billion rupees behind the target
Despite the promises made by the provinces, Pakistan earned a cash surplus of only Rs 921 billion, which is Rs 280 billion less than the Rs 1.2 trillion of IMF. FBR could not collect any notable revenue under Tajir Dost Yojana. However, despite these deficiencies, Pakistan will not have to face serious obstacles in the next review, as progress has been made on other important terms. This bailout package was approved in 2024 and is considered important in stabilizing Pakistan’s economy. (PTI)
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