Prime Minister Shehbaz Sharif emphasized the importance of aligning the fiscal year 2024-25 budget with the International Monetary Fund (IMF) requirements during his address to the National Assembly on Tuesday. As lawmakers discussed budget proposals, the premier expressed optimism about receiving a favorable response from the global lender, stating, “I will not make any premature statements but hope for good news from the IMF.”
The Pakistan Muslim League-Nawaz (PML-N) led coalition government is working diligently to meet the prerequisites for a more extended and larger IMF program. This includes setting a high tax revenue target and aiming to reduce the fiscal deficit from 7.4% to 5.9%. Streamlining tax collection processes and broadening the tax base are key strategies to achieve these fiscal goals.
Pakistan has set an ambitious tax revenue target of Rs13 trillion for the year starting July 1, representing a nearly 40% increase from the current year. This target is crucial to strengthening the case for a new bailout deal with the IMF.
During his address, PM Shehbaz highlighted that during the PML-N’s tenure, the government had allocated 10% more budget and job quota to South Punjab compared to its population-based share. Additionally, 10% more laptops were provided to South Punjab students, and a similar percentage was allocated to the Chief Minister Punjab Rozgar Scheme. The stipend for girl students in South Punjab was also increased from Rs200 to Rs1,000.
Regarding infrastructure projects, the prime minister noted that his previous Punjab government had undertaken road construction projects that were supposed to be completed by the federal government.
On austerity measures, Shehbaz announced the abolition of the Pakistan Public Works Department, citing widespread corruption. He also mentioned the formation of a committee, chaired by Finance Minister Muhammad Aurangzeb, to oversee the downsizing and rightsizing of various departments. The committee’s findings will be presented to the house.
PM Shehbaz assured the assembly that the government would provide detailed information about its expenses to parliamentarians within the next 1.5 months.
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