The approval of Pakistan’s 2024-25 budget by the National Assembly, totaling Rs18,870 billion, has faced scrutiny from the International Monetary Fund (IMF). The IMF has stressed that while the budget’s passage is a step forward, more substantial measures are necessary to address Pakistan’s economic challenges.
Specifically, the IMF is pushing for Pakistan to implement additional reforms, including significant increases in electricity and gas rates starting from July 1. They also urge the swift implementation of tariff adjustments as per the National Electric Power Regulatory Authority’s decisions.
Furthermore, the IMF emphasizes the critical importance of removing tax exemptions and subsidies. They argue that eliminating these fiscal benefits is essential for Pakistan’s economic recovery, asserting that such measures will contribute to stabilizing the economy and improving the country’s overall financial health.
In essence, while Pakistan’s budget approval marks progress, the IMF believes that more stringent actions are imperative to meet the country’s economic needs and stabilize its financial situation effectively.