Pakistan-IMF consultations on budget likely this week

Consultations on the budget between Pakistan and the IMF are expected this week.

The budget for the next fiscal year will be prepared in consultation with the IMF, sources say.

The IMF delegation’s visit to Islamabad was scheduled for May 14, according to sources.

Due to tensions between Pakistan and India, negotiations may also take place over Zoom, they added.

The Ministry of Finance has finalised the outlines for the next budget. The initial draft of the budget will be shared with the IMF mission, sources mentioned.

Estimated tax revenues for the next fiscal year are projected to be Rs14,300 billion. The estimate for non-tax revenue will be around Rs4,000 billion.

The upcoming budget will also be a deficit budget, according to officials from the Ministry of Finance. The budget deficit is estimated to be kept at 1.3 per cent of GDP.