Pakistan Approves Rs18,870 Billion Budget 2024-25 Amid IMF Directives

The National Assembly (NA) yesterday approved the Federal Budget for the fiscal year 2024-25 with a total outlay of Rs18,870 billion.

According to sources, the IMF wants Pakistan to hike the electricity and gas rates from July 1 and immediately implement the NEPRA decision regarding the increase in gas and power tariffs.

IMF also demanded the removal of tax exemptions and subsidies, terming them “essential” for the country’s economic recovery, sources added.

However, the IMF has lauded the government’s tough economic decisions in the budget, including the reduction of tax exemptions and subsidies, sources said.

NA approves Federal Budget 2024-25

Furthermore, the IMF delegation’s visit to Pakistan in the last week of June has been postponed, the team is likely to visit in the second week of July, sources added.

It is pertinent to mention here that the total outlay of the federal budget for the fiscal year 2024-25 is Rs. 18.877 trillion. The budget outlines the government’s fiscal policies and budgetary allocations for the upcoming financial year, reflecting a comprehensive plan to address various economic and social challenges.

PM Shehbaz Sharif

Earlier, Prime Minister (PM) Shehbaz Sharif said that the government had to prepare the fiscal year budget 2024-25 while keeping recommendations of the International Monetary Fund (IMF) in mind.

PM Shehbaz hoped to get a good response from the IMF. “If the response comes from the IMF, we will present it (before the house) on Wednesday,” he added.

IMF visit

The IMF delegation, led by Mission Chief Nathan Porter, visited Pakistan and held extensive negotiations from May 13 to May 23 to discuss the country’s economic improvements.

The statement highlights that the Pakistani government is making serious efforts to increase revenue and emphasizes the need for fair tax collection from privileged sectors.