The federal government has collected more than Rs2.7 trillion in petroleum levy from citizens over the past two years, according to official documents, with the amount reportedly exceeding the combined value of Pakistan’s two ongoing International Monetary Fund (IMF) loan programmes. Read More: IMF seeks higher petroleum levy target Documents revealed that from April 2024 to March 2026, […]
Fiscal Policy
IMF sets 11 new conditions for Pakistan economic reforms
The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan as part of its ongoing economic reform programme, including further increases in petroleum, gas and electricity prices, according to official reports. The new requirements also include structural reforms aimed at improving fiscal discipline, strengthening tax collection, and enhancing transparency in key government institutions. […]
IMF sets strict conditions for sovereign wealth fund
The International Monetary Fund (IMF) has reportedly demanded that Pakistan implement six strict conditions to make its sovereign wealth fund fully operational, according to official sources in Islamabad. The conditions are aimed at strengthening financial discipline and limiting the fund’s exposure to riskier economic activities. Under the proposed framework, the sovereign wealth fund would be […]
Government debt rises sharply over two years
Pakistan’s federal government has recorded a significant increase in its total debt during the first two years of the current administration, according to newly released data from the State Bank of Pakistan. Read More: Pakistan achieves record early debt repayment, reduces debt ratio Official documents show that government debt rose by approximately Rs 15,072 billion between March 2024 and […]
Federal development budget slashed by Rs173bn amid IMF pressure
Pakistan’s federal development budget has been reduced by Rs173 billion amid pressure from the International Monetary Fund and the economic impact of ongoing Middle East tensions, officials said on Wednesday. Read More: Federal development spending remains slow in first five months According to the Ministry of Planning, the Public Sector Development Programme (PSDP) has been cut […]
Takaichi party poised for landslide in Japan’s lower house election
TOKYO: Japanese Prime Minister Sanae Takaichi ruling party is on track for a commanding victory in next week’s lower house election, according to a survey conducted by the Asahi newspaper, boosting her mandate for expansionary fiscal policies. Read More: PM Takaichi calls snap election in Japan The poll, released Sunday, indicates Takaichi’s Liberal Democratic Party (LDP) is likely to […]
Power sector circular debt edges up despite payments
ISLAMABAD: Pakistan’s power sector circular debt rose by Rs75 billion in the first half of the current fiscal year despite significant capital injections and large-scale commercial borrowing, highlighting persistent structural weaknesses in the energy system. Read More: Power Division denies Rs 224 billion circular debt spike reports Official data from the power division showed that circular debt […]
Pakistan growing reliance on diaspora remittances raises concerns
ISLAMABAD: Remittances from overseas Pakistanis reached a record $38.3 billion in FY25, rising more than 26 percent from the previous year, according to the State Bank of Pakistan. While these inflows have bolstered foreign exchange reserves and household consumption, experts warn that excessive dependence on remittances poses long-term economic and social risks. Read More: Remittances […]
Pakistan seeks IMF flexibility to support growth in next budget
The government is considering multiple options to seek relaxations from the International Monetary Fund (IMF) on key fiscal and macroeconomic targets ahead of the 2026–27 budget. The move is aimed at reviving economic activity and creating space for growth-oriented policies. Policymakers believe that strict conditions under the IMF’s Extended Fund Facility have constrained growth by […]
IMF warns tax-to-GDP ratio likely to stagnate
The International Monetary Fund (IMF) has projected that Pakistan’s tax-to-GDP ratio will remain largely stagnant over the next five years, despite a notable increase recorded in the previous fiscal year. While federal tax collections improved due to additional revenue measures, the Fund expects only marginal gains going forward, mainly driven by provincial taxes. Read More: […]