Pakistan’s government is set to present its annual budget, focusing on the nation’s precarious economic situation and the upcoming national elections. Finance Minister Ishaq Dar plans to propose a budget exceeding 14 trillion rupees (US$50bn), aiming for a 3.5% growth and a reduction in inflation to 21% from a record 38%. The government also hopes to generate over 9 trillion rupees (US$32bn) in revenue through taxes.
The budget is crucial for Pakistan, as it seeks to unlock more than US$2.5bn remaining in a US$6.5bn International Monetary Fund (IMF) bailout programme expiring at the end of this month. With a population of 230 million, Pakistan urgently needs the IMF funds to avoid defaulting on its mounting debt and recover from an ongoing economic crisis.
Pakistan’s foreign exchange reserves have dwindled to less than US$4bn, covering less than a month’s worth of imports….
