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Pakistan’s finance minister said the 3.5 percent economic growth forecast in the country’s budget for 2023-2024 was a “realistic target”. That is a “low” target, Ishaq Dar said a day after he presented the country’s budget amid the economic crisis. The country’s budget comes as Islamabad is seeking more bailout money from the International Monetary Fund.
The finance minister said he “hopes” Pakistan will pass its next IMF review – the ninth for the country. But he added that he “didn’t think” it would clear comments beyond that. Pakistan’s gross domestic product (GDP) is expected to grow by just 0.29%, while the budget says the fiscal deficit for the next fiscal year is expected to be 6.54% of GDP.
Ishaq Dar said there was “no more room” in the budget to further reduce the fiscal deficit target as the country faced a series of economic crises as IMF bailout funding stalled.
The finance minister further informed that the Shehbaz Shairf government has no plans to reschedule its debt to Paris Club creditors or seek debt relief. Pakistan needs to secure firm and credible financing commitments to bridge the $6 billion gap in order to release funds subject to IMF review. According to earlier reports, Pakistan has only received pledges of $4 billion, mainly from Saudi Arabia and the United Arab Emirates.
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