Pakistan’s budget targets economic growth of 3.5%

As Pakistan is trying to persuade the International Monetary Fund to release more bailout money, its budget for fiscal 2023-24, unveiled by finance minister Ishaq Dar recently, targets economic growth of 3.5 percent and total spending of 14.46 trillion rupees for the fiscal.

It has set the fiscal deficit target at 6.54 percent of the gross domestic product (GDP) and the primary surplus at 0.

4 percent of the GDP for the fiscal. It expects inflation to average 21 percent in the fiscal. It targets a total tax revenue of 9.2 trillion rupees and non-tax revenue of 3 trillion rupees for the fiscal.

It estimates debt servicing funds of 7.3 trillion rupees and the current account deficit to stand at billion by end of the fiscal.

Rupees 1.1 trillion is earmarked for subsidies. The tax-to-GDP ratio will stand at 8.

7 percent, it projects. Rupees 950 billion will be spent on public sector development and the agriculture credit limit has been enhanced from rupees 1,800 billion to rupees 2,250 billion, Pakistani media outlets reported.

It also proposed the withdrawal of all duties and taxes on imported seeds, combined harvesters, dryers, and rice planters.