Pakistan has successfully met several major International Monetary Fund (IMF) conditions during the first six months of the fiscal year. According to the Ministry of Finance, the country exceeded its primary surplus target, reaching 3.6 trillion rupees compared to the 2.9 trillion rupees goal. Additionally, the four provinces reported a surplus of 776 billion rupees, surpassing the target of 750 billion rupees.

Tax Revenue and Challenges

However, the Federal Board of Revenue (FBR) faced a shortfall of 384 billion rupees in tax collection, gathering 5.6 trillion rupees instead of the target of 6 trillion rupees. Despite this, the implementation of agricultural taxes is expected to further boost revenue generation.

Budget Deficit and Government Spending

The government reported a budget deficit of 2.3 trillion rupees in the first half of the year. While the federal government’s revenue stood at 5.8 trillion rupees, expenditures exceeded 8.2 trillion rupees, leading to an overall fiscal imbalance. The government spent over 5 trillion rupees on debt interest alone, with just 164 billion rupees allocated for federal development projects.

Outlook for the Rest of the Fiscal Year

As the fiscal year progresses, Pakistan aims to address these challenges by focusing on enhancing tax collection, especially from the agricultural sector, and managing public expenditures more effectively to stabilize the economy and meet IMF requirements.