ISLAMABAD: The preparation of the Fiscal Year 2023-24 budget in Pakistan has been delayed due to the lack of an agreement with the International Monetary Fund (IMF). According to sources, the delay in the preparation of the budget’s strategy paper is due to political and economic uncertainty.
Sources stated that the budget strategy paper was planned to be prepared and approved by the cabinet in the second week of April, but it has been delayed due to the situation. The delay has also affected the scheduling of the development and current expenditures for the upcoming fiscal year.
As of now, the annual plan coordination committee session has not been summoned, but the National Economic Council (NEC) session has been scheduled for the first week of May. The budget document is expected to be finalized by the end of May and will be presented for approval to the federal cabinet.
FY 2023-24 budget likely in first week of June
Sources revealed that the FY 2023-24 federal budget is likely to be presented to the cabinet and parliament in the first week of June. However, the budget is expected to be prepared under the supervision of the IMF. The fiscal planners will need to receive approval from the IMF regarding key targets such as tax revenue, financial deficit, and development budget for the next fiscal year.
The delay in the budget’s preparation may lead to a delay in the implementation of development projects, which may have an adverse effect on the country’s economy. The government will have to work quickly to finalize the budget to ensure that development work is not affected. The budget’s delay may also lead to inflation and other economic issues.
The government must address the issues causing the delay in the budget’s preparation and ensure that it is presented on time to avoid any adverse effects on the country’s economy.
