IMF calls Pakistan's budget problematic 2022

IMF CALLS PAKISTAN'S BUDGET 2022 PROBLEMATIC:

Pakistan's new government unveiled its first budget. This was much awaited by many because this government took birth out of a crisis and it adopted an economy completely wounded but the budget is just the first step there is a long way ahead for Shahbaz Sharif and there already seems to be a huddle. The international monetary fund has expressed concerns over lets Islamabad budget. The group has raised many objections.

OBJECTIONS OVER BUDGET:

 FUEL SUBSIDIES:

 The IMF thinks that subsidies on fuel and energy are not required but Islamabad says the subsidies cannot be reversed because the country would not be able to cope without them. This alone is costing the government over 595 million dollars a month.

WIDENING CURRENT ACCOUNT DEFICIT:

The second is the widening current account deficit which means that Pakistan's imports are much greater than its exports. A current account deficit is not always bad for the economy. External debts sometimes help finance investments but not in Pakistan's case whose currency is already depreciating.

RAISE TAXES:

 third raise more direct taxes but sharif's government appears optimistic. The finance minister is confident that the plan will work but Pakistan needs IMF to agree on toits plan.

PAKISTAN'S BUDGET 2022:

 Let's recap Pakistan unveiled an over 47 billion dollar budget. The plan focused on a tight fiscal consolidation which basically means reducing the underlying deficit fuel subsidies have been cut in the last two weeks and direct tax revenues remain a concern. These are crucial factors for the country because the administration is hard at work restarting bailout payments by the IMF. Pakistan is halfway through a six billion dollar program but it was stalled due to concerns over the status of some of its objectives but time is running out. Islamabad needs to clear all concerns of the IMF before the budget is passed by parliament. The financial year runs from July 1st to June 30th.In May inflation in Pakistan jumped to 13.76 per cent the highest in over two years. Foreign reserves meanwhile are at their lowest. They have fallen to 10 billion dollars, a 50 drop from august 2020 and this money will barely cover two months of orts.

SHEHBAZ'S GOVERNMENT FAILS TO HANDLE THE COUNTRY'S ISSUES:

The new government is not able to run smoothly that's why the country's economy is falling down day by day. Hopefully, Imran khan's government IK will be elected to handle the country's issues smoothly and successfully.