The International Monetary Fund (IMF) has projected that Pakistan’s fiscal deficit for the year 2023-24 will exceed the government’s target by Rs1,137 billion, according to its Fiscal Monitor Report 2023.
The IMF’s report indicates that Pakistan’s fiscal deficit is expected to reach Rs8,042 billion, surpassing the government’s target of Rs6,905 billion. This implies that the country’s expenses will nearly double its gross income.
Additionally, the IMF predicts that the deficit will be 7.6% of the Gross Domestic Product (GDP), higher than the government’s set target of 6.5%. Furthermore, the debt ratio is expected to remain at 72.2%, significantly exceeding the statutory target of 60%.
In the fiscal year 2023, the report suggests that the primary surplus is estimated to be Rs421 billion, aligning with the 0.4% target. The gross income is projected to be 12.5% of the GDP, while the gross expenditure is estimated to be 20.1% of the GDP.
