ISLAMABAD:
The Economic Survey of Pakistan 2023-24, a pre-budget document detailing the country’s major socio-economic achievements during the outgoing fiscal year, will be launched today (Tuesday).
Finance Minister Muhammad Aurangzeb is scheduled to present the survey in the National Assembly (NA) at 5pm, according to a statement issued by the finance ministry on Monday.
This survey precedes the federal budget for the fiscal year 2024-25, set to be presented on June 12 (Wednesday).
Officials and analysts indicate that the coalition government, led by the Pakistan Muslim League-Nawaz (PML-N), plans to set ambitious fiscal targets in the Budget 2024-25 to bolster its case for a new bailout deal with the International Monetary Fund (IMF).
Acknowledging severe financial constraints and reduced development funding under the IMF programme, the Annual Plan Coordination Committee (APCC) has recommended Rs1,221 billion for the federal development programme for the financial year 2024-25.
This will be the first budget presented by the current government. As Pakistan seeks a loan programme to avoid default in a sluggish economy, the IMF has urged the country to raise provincial taxes, particularly on agriculture, sales tax on services, and property tax.
Pakistan is negotiating with the IMF for a loan estimated between $6 billion to $8 billion to prevent a default in an economy that is growing at the slowest pace in the region.
Pakistan narrowly avoided default last summer thanks to a short-term IMF bailout of $3 billion over nine months. While fiscal and external deficits have been controlled, this has led to a sharp decline in growth and industrial activity, coupled with high inflation, which averaged close to 30% in the last financial year and 24.52% over the last 11 months.
The growth target for the upcoming year is expected to be 3.6%, compared to 2% this year and economic contraction last year.
Since being elected in the February 8 general elections, Premier Shehbaz has publicly committed to tough reforms. However, high prices, unemployment, and a lack of new job opportunities have put political pressure on his coalition government.
Another critical aspect of the budget will be the targets set for proceeds from privatisation.
Pakistan aims to make its first major sale in nearly two decades by selling a stake in its national airline. This is expected to be the first in a series of sales of loss-making entities, particularly in the troubled power sector.