The Presentation of Pakistan’s Fiscal Year 2024-25 Budget: A New Path to Economic Recovery

Today, the coalition government in Pakistan is set to unveil the budget for the fiscal year 2024-25 in a pivotal move to secure a new bailout deal with the International Monetary Fund (IMF). Finance Minister Muhammad Aurangzeb will present the budget, outlining proposed expenditures and means of financing, in the National Assembly at 4pm.

The budget’s general debate is scheduled to commence on June 20, with voting on cut motions on June 26-27 and the final passage on June 28. Last week, the government released the Pakistan Economic Survey 2023-24, highlighting challenges in meeting targets, except for remarkable growth in the agriculture sector.

In a bid to adhere to IMF requirements, the government approved a significant increase in the federal Public Sector Development Programme. Tough negotiations with the IMF on tax revenue, subsidy withdrawal, and sectoral levies highlighted the need for fiscal austerity. Economist Sakib Sherani emphasized the challenge of balancing IMF conditions with fiscal prudence and economic growth.

Despite economic challenges, the agriculture sector’s notable growth played a key role in driving GDP expansion. The government aims to reform state-owned enterprises and revenue systems to ensure a stronger economic footing in the upcoming fiscal year, with the IMF’s backing.