Updated on
Summary The IMF has asked Pakistan to reduce budget deficit in current fiscal year.
According to a statement issued from Washington, Pakistan has agreed with IMF to reduce the budget deficit to restore macroeconomic stability. The IMF said that Pakistan had to take solid steps to reduce inflation and mobilise additional revenue through constructive tax policy. The IMF also welcomed the Pakistani government’s efforts to lower recourse to State Bank of Pakistan (SBP) borrowing since late December. The statement said that expenditure prioritisation needed to protect pro-poor spending and flood assistance and reconstruction efforts.
