IMF agreed to keep the target of tax collections at 9200 billion rupees for the next financial year

 IMF agreed to keep the target of tax collections at 9200 billion rupees for the next financial year

KARACHI: Pakistan's 2023-24 budget, to be released on Friday, will strike a balance between reforms to please the International Monetary Fund and measures to win over voters in upcoming elections, analysts said.

 Pakistan's International Monetary Fund program ended this month, with about $2.5 billion still being released as Pakistan struggles to reach an agreement with lenders to combat record inflation, fiscal imbalances and low foreign reserves.

 A general election is due to be held by November, and the government is hoping to end the turmoil caused by protests that have plagued former Prime Minister Imran Khan since he was ousted in a no-confidence vote last year.

 Former Finance Minister Mehta Ismail said there is little chance of a budget increase as the government needs IMF funding.

 "Without the International Monetary Fund, it will be very difficult for Pakistan to survive next year, so I am sure that the government will set a budget that is more or less in line with the IMF version," Ismail said.

 An IMF staff-level agreement to release $1.1 billion of a $6.5 billion package has been delayed since November.

 This money is crucial for Pakistan to avoid a balance of payments crisis, and most analysts believe that even after the current program ends, Pakistan will have to seek bailouts in the next fiscal year to avoid default. I think there is.

 Central bank reserves can cover about one month of imports.

 Inflation in this country of 220 million people rose to 37.97 percent in May, breaking records for the second consecutive month and becoming the highest rate in South Asia.

 On Tuesday, the planning minister announced a budget target of 1.15 trillion rupees ($4.02 billion) for construction spending in the new fiscal year, with inflation expected to be 21 percent for the year.

 With the general election looming, some analysts believe the government will announce vote-getting measures on Friday, even if it has to scale back its promises later.

 Fahad Rauf, head of research at Ismail Iqbal Securities, a Karachi-based brokerage, said he expects government workers' wages to rise and measures to help the public.