Pakistan Budget for FY 2024: The financial health of India’s neighboring country Pakistan is continuously deteriorating. In such a situation, the Government of Pakistan is going to present the budget for the financial year 2024 before the elections to get a bailout package from the International Monetary Fund. It is believed that the government will try to fulfill all the conditions of IMF (Pakistan IMF Bailout Package) through this budget so that it can overcome its cash crunch.
There is a mountain of troubles in front of Pakistan.
The financial deficit of the Government of Pakistan is continuously increasing and the inflation rate in the country has reached a record level. With this, the Pakistani rupee has depreciated by 30 per cent against the dollar in the last one year. At the same time, there is a huge shortage of foreign exchange in the country. There is only so much forex reserve left in the country that only one month can be imported. In such a situation, through the budget of the financial year 2024, Pakistan can try to reduce some of its difficulties.
Fiscal deficit likely to be 6.54 percent
According to the Reuters report, the total fiscal deficit of the gross domestic product for the financial year 2023-24 is estimated to be 6.54 percent. Along with this, Pakistan’s Finance Minister Ishaq Dar has said that earlier the government had estimated that the fiscal deficit would be 4.9 per cent, but now it has come down to 6.54 per cent. In such a situation, a big decline has been recorded in comparison to the estimate. In such a situation, the total income of the government is likely to be 9.2 trillion Pakistani rupees and the expenditure is 14.5 trillion rupees.
How much will be the defense budget of Pakistan?
Significantly, the aim of the government is to reduce the inflation rate in the country. At present, the inflation rate in the country is around 38 percent, which the government is trying to take up to 21 percent. Along with this, the Government of Pakistan has kept a total of 1.8 billion rupees on the defense budget in the financial year 2024. It is worth noting that in the coming few months, the government has to pay an installment of Rs 7.3 billion loan. In such a situation, how the government will repay this debt in the tax collection of Rs 9.2 billion is a big question. On Friday, PM Shahbaz Sharif said that we hope that by the end of this month we will complete the IMF program. Along with this, he thanked UAE, Saudi Arabia and China for supporting Pakistan in difficult times.
IMF bailout package ending this month
Standing on the verge of default, the term of Pakistan’s $ 6.5 billion bailout package with the IMF is ending this month. In such a situation, it is very important for Pakistan, which is facing cash crisis, to get this bailout package. The government hopes to get the next tranche of $2.5 billion from the IMF soon.
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