Categories: World

Pakistan Nears $6 Billion IMF Bailout Deal Amidst Budget Challenges

Pakistan has successfully met all requirements set by the International Monetary Fund (IMF) in its annual budget, aiming to secure a bailout package exceeding $6 billion to stabilize its economy and avert a financial crisis. The ambitious revenue targets set in the budget are seen as crucial in gaining IMF approval, despite facing domestic resistance over new taxation measures.

Minister of State for Finance, Revenue, and Power, Ali Pervaiz Malik, expressed confidence in finalizing a staff-level agreement with the IMF within the next few weeks. The agreement, crucial for Pakistan’s economic stability, focuses on fiscal reforms and revenue enhancements to reduce the fiscal deficit and boost tax revenues significantly.

“We expect the IMF to approve a package north of $6 billion,” Malik stated, emphasizing the IMF’s validation as the primary goal at this stage. The IMF has acknowledged Pakistan’s efforts in meeting major prior actions, including stringent budgetary measures, paving the way for further negotiations.

Pakistan has set an ambitious tax revenue target of 13 trillion rupees ($47 billion) for the current fiscal year, representing a nearly 40% increase from the previous year. Additionally, the country aims to reduce its fiscal deficit to 5.9% of GDP, down from 7.4% in the previous fiscal year.

While these fiscal reforms are crucial for IMF approval, they have sparked public discontent due to their potential economic burdens. Analysts warn of potential social and economic repercussions, despite acknowledging the necessity of stabilizing Pakistan’s economy through the IMF program.

Economists stress the urgency of finalizing the IMF deal to prevent further pressure on Pakistan’s foreign exchange reserves and currency stability amidst debt repayments and economic challenges. The country’s stock market has shown resilience, rallying 10% since the budget announcement in anticipation of IMF support.

ALSO READ: Tragic Stampede In Hathras: FIR Filed, CM Yogi Adityanath Visits Victims, ₹2 Lakh Compensation Announced For Families Affected

Priyanka Koul

Recent Posts

Delhi HC Rejects ‘Pre-Arrest’ Bail To Ex IAS Trainee Puja Khedkar In UPSC Dupe Case

Puja Khedkar is alleged to have cheated and taken undue advantage of the OBC and…

5 mins ago

What Is Typhon Missile System? Philippines Announces Plans To Buy The Weapons System From US

The Philippines has confirmed plans to acquire the US-made Typhon missile system, a move that…

1 hour ago

KJS Cement Case: SC Refuses To Quash 2nd FIR Against Pawan Kumar Ahluwalia

The Supreme Court of India declined to intervene in a case involving Pawan Kumar Ahluwalia…

2 hours ago

Honda And Nissan Outline Ambitious Path To Merger In Industry Restructuring

Japanese car manufacturers Honda and Nissan have announced intentions to combine forces, paving the way…

2 hours ago

Lakshmi Puri Moves Delhi HC Against Saket Gokhale Over Defamation Ruling

Former United Nations Assistant Secretary-General Lakshmi Puri has filed a petition with the Delhi High…

2 hours ago

Tamil Nadu Bakery Honors Ratan Tata With A 7-Foot Ice Cake Statue Featuring His Beloved Dog Tito

A Tamil Nadu bakery unveiled a 7-foot ice cake statue of Ratan Tata with his…

2 hours ago