ISLAMABAD – Pakistani government rolled out the budget for the next financial year with the aim to boost economic growth with several stern measures, however International Monetary Fund is still not satisfied.
US-based lender raised objections over the budgetary framework, and asked Sharif-led government to increase both tax and non-tax revenues efforts.
Fund pushed the government to increase petroleum development levy up to Rs869 billion for FY24 however Ministry of Finance however opposed jacking up the levy.
Amid the uncertainty, Moody’s Investors Service warned that Islamabad is at huge risk of a failure to salvage IMF bailout funds which remained stalled since November last year.
In a statement, the rating company said Pakistan could default, without an IMF programme.
Islamabad has taken all desperate measures to appease the international lender, with a financing gap of around $2 billion and exchange-rate policy among the biggest hurdles.
Testing times for Pakistan as IMF demands 8bn assurance to unlock loan tranche
