Pakistan agrees to Rs11tr tax target with IMF for FY25

December 02, 2023 (MLN): Pakistan has reached an agreement with the International Monetary Fund (IMF) for key targets in FY25, which includes a tax collection target of more than Rs11 trillion, as per the Memorandum for Economic and Financial Policies (MEFP) draft.

To note, the tax collection target for the current fiscal year, i.e. FY24 is Rs9.415tr.

Additionally, the agreed budget size for FY25 is approximately Rs16.5tr, with government expenditures expected to reach Rs16tr, compared to Rs14.48 trillion in FY24.

The draft further revealed that the debt and interest payments will stand at more than Rs9.5tr in FY25.

The defense budget is set at Rs2.1tr, while subsidies and grants are estimated at Rs3tr.

As per the MEFP draft, provinces will receive Rs5.32tr in the next financial year, and Rs780 billion is allocated for the Federal Development Program.

Moreover, the projections indicate that the fiscal deficit will stand at around Rs9tr.

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