Federal Budget Likely to Be Presented on June 2: IMF Forecasts Economic Growth at 3.6% and Inflation at 7.7%

Islamabad: The federal budget is expected to be presented on June 2, with virtual technical negotiations ongoing between the IMF and Pakistan. Policy-level discussions will start on May 19 and continue until May 23.
According to sources, the total income for the upcoming fiscal year could reach 20 trillion Pakistani rupees, while stringent control over expenditure for debt servicing is necessary. The IMF forecasts economic growth at 3.6% and inflation at 7.7%.
The government’s revenue target for the next year is set at 19.9 trillion rupees, with tax revenue from the FBR and agricultural income taxes playing a significant role. Expenditures are expected to reach 26.057 trillion rupees in the coming year.
The IMF has advised that the fiscal deficit should be reduced from 5.6% to 5.1%, while maintaining a primary surplus of 2.01 trillion rupees. The government aims to reduce the debt-to-GDP ratio from 77.6% to 75.6%.
Additionally, the Ministry of Finance has directed all ministries to submit their Environmental Tagging Form C3. The federal budget will require the mandatory environmental classification of subsidies, and post-PSDP subsidies and grants will also be linked to environmental costs.