Islamabad(Stafff Reporter);Govt Notifies IMF of Budget Revisions, The government has informed the International Monetary Fund (IMF) of significant revisions to budget targets due to a shortfall in non-tax revenue.
Sources reveal that the government has adjusted its budget targets in response to a decrease in non-tax revenue. This adjustment has led to an anticipated increase in the fiscal deficit for the current financial year, expected to rise by PKR 1,258 billion. The deficit target is now projected to climb from PKR 8,500 billion to PKR 9,758 billion. With a provincial surplus of PKR 1,217 billion, the deficit could potentially reach PKR 8,541 billion.
The Ministry of Finance stated that both domestic and external loans will be used to cover the deficit. Government revenue is estimated to fall from PKR 10,377 billion to PKR 9,119 billion. The non-tax revenue target has been reduced from PKR 4,845 billion to PKR 3,587 billion. The State Bank’s profit is now expected to be capped at PKR 1,258 billion, down from PKR 2,500 billion.
The Ministry also noted that PKR 1,281 billion will be collected through the Petroleum Development Levy. Government debt is projected to increase by PKR 8,489 billion this fiscal year, raising the public debt to PKR 79,731 billion. The debt-to-GDP ratio is expected to remain at 64% for the year.
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