Pakistan: Ruling junta seems least concerned about FY24 Federal Budget

Today is May 17, 2023 and the Federal Budget for next Financial Year (FY24) is scheduled to be announced on June 02, 2023. I hardly see any debate in the print or electronic media on the likely facets of the Budget.

The growing concern among the analysts is that the incumbent government will accept all the conceivable conditions of the International Monetary Fund (IMF) to get the withheld tranche released, amounting to roughly one billion US dollar.

The analysts have this perception based on the fact that meeting the IMF conditions will be the headache of next elected government.

They also have the consensus that in the next budget the existing tax rates will be increased and new taxes will be introduced. On top of that super tax will also be introduced.

Along with this, subsidies will be withdrawn, levies applicable on energy products will be increased.

The government will not be able to boost exports or contain imports.

The quantum of informal import ill increase.

The quantum of PSDP will also be reduced.

The bottom line is, GDP growth will remain below one percent or negative.

The most alarming point is that the government will not be able to offer any income support program, poor will get poorer and rich will get richer.