Pakistan Presents Macro Framework to IMF, Targets Rs12 Trillion Tax Collection

DTD-May 22, 2024

1 minute read

Citi Projects Pakistan’s New IMF Programme to Reach $8 Billion

Pakistan’s economic team has reportedly presented an extensive macroeconomic framework to the International Monetary Fund (IMF), aiming for a tax collection target exceeding Rs12 trillion for the fiscal year 2024-2025.

This comes amid ongoing policy discussions between Pakistani authorities and the IMF for the next phase of the financial engagement.

Last month, Pakistan successfully completed a $3 billion Stand-By Arrangement with the IMF. However, the government is now advocating for a longer-term programme to stabilise the economy.

Wall Street bank Citi projects that Pakistan will secure a new four-year programme worth up to $8 billion by the end of July.

Reports indicate that the IMF forecasts Pakistan’s GDP growth at 3.5 per cent for FY25, slightly below the Finance Ministry’s projection of 3.7 per cent. Additionally, the IMF expects inflation to be around 12.7 per cent, while the Finance Ministry estimates it at 11.8 per cent.

Approximately Rs9.7 trillion is expected to be allocated for interest and loan repayments in the next fiscal year’s budget. The IMF has projected a current account deficit of $4.6 billion, compared to the Ministry of Finance’s slightly lower target of $4.2 billion.

Exports and remittances are anticipated to generate over $61 billion, with export targets set at $32.7 billion and remittances expected to contribute $30.6 billion. On the import side, the international lender estimates the import bill to be about $61 billion, which is $3 billion higher than the Finance Ministry’s estimate.