[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pakistan’s federal government is contemplating strict measures in the 2024-25 budget to significantly reduce spending. However, an International Monetary Fund (IMF) report suggests a more than 19 percent increase in Pakistan’s defense budget.
According to Business Recorder, the IMF projects Pakistan’s budget to reach Rs 2.152 billion, reflecting a 19.29 percent rise from the current year’s budget of Rs 1.804 billion. The IMF estimates this allocation to represent 1.72 percent of the Gross Domestic Product (GDP), with the nominal GDP for the upcoming fiscal year estimated at Rs 124.813 billion, compared to Rs 106.577 billion for the ongoing fiscal year.
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In its second and final review documents of the Stand-By Arrangement, the IMF also forecasts total current expenditure (federal plus provincial) for the next fiscal year to be Rs 22.037 billion, a 15.09 percent increase from the current year’s budget of Rs 19.146 billion. The federal current expenditure is expected to reach Rs 16.712 billion for the next year, reflecting a 14.8 percent increase from the current fiscal year’s budget of Rs 14.555 billion, equivalent to 13.3 percent of the GDP.
Interest payments, as part of current expenditure, are forecasted to be Rs 9.787 billion for FY25, compared to Rs 8.602 billion for the ongoing fiscal year, representing a surge of 13.7 percent. Additionally, development expenditure and net lending are projected to be Rs 2.673 billion for the next fiscal year, a rise of 22.67 percent from Rs 2.179 billion in the current fiscal year.[/vc_column_text][/vc_column][/vc_row]
