Latest news with #TajirDostScheme
India.com
a day ago
- Business
- India.com
Debt-ridden Pakistan breaks IMF's trust, fails to fulfill its promises, will IMF give more money?
Debt-ridden Pakistan breaks IMF's trust, fails to fulfill its promises, will IMF give more money? Pakistan, which is facing poverty, is dependent on International Monetary Fund (IMF). It has taken a huge loan of 7 billion dollars (about Rs 58,100 crore) from the IMF and in return it had to achieve some targets. But Pakistan could not fulfill even those promises. According to the report, Pakistan failed to achieve three out of five targets. Despite this, it is still hoping for next installment from the IMF which will review it in September. Which targets did Pakistan miss? According to a report by The Express Tribune, this information has come to light in the 'Fiscal Operations Summary' released by the Pak Finance Ministry. The first of the three major targets of the IMF that Pakistan failed to meet was the saving of 1.2 trillion by the provinces, which was not possible due to rising expenses. Second, the Federal Board of Revenue (FBR) was unable to achieve the total revenue target of 12.3 trillion. Apart from this, Pakistan also completely missed the target of recovery of 50 billion under the 'Tajir Dost Scheme' launched to collect tax from retail traders. Is Pakistan's economy improving? The Pakistani government report says that despite not being able to fulfill the IMF promises, there have been some positive signs. The country has achieved a primary budget surplus of 2.7 trillion Pakistani rupees against the target of 2.4 trillion, this is the second consecutive year and the highest in 24 years. Also, the total fiscal deficit was limited to 5.4% of GDP, which is 6.2 trillion. What is difficult for pakistan? According to the report, the Finance Ministry tried to control expenditure throughout the year, but the provincial governments, which are outside the control of the federal government, did not save Rs 1.2 trillion as promised by the IMF. They could save only Rs 921 billion, i.e. the target of Rs 280 billion was missed. According to the report, the Pakistan government is hoping that despite not meeting some targets, it will not face any serious hurdles in the next IMF review. The review may take place in September and by then Pakistan is expected to receive the next tranche of $1 billion.
News18
2 days ago
- Business
- News18
$7 Billion Loan In Jeopardy? Pakistan Misses IMF Targets, Bailout At Risk
The provincial governments had given the understanding to the IMF and the federal government to generate PKR 1.2 trillion cash surpluses. Pakistan, which relies heavily on foreign funding, might lose USD 7 billion as Islamabad has failed to meet three out of the five targets set by the International Monetary Fund (IMF) ahead of the second review for the bailout package. The Federal Board of Revenue could not collect PKR 12.3 trillion in total revenues and PKR 50 billion from retailers under the Tajir Dost Scheme during the last fiscal year, the Express Tribune newspaper reported. The rise in expenditures led to provinces falling short of saving the targeted PKR 1.2 trillion in the last fiscal year, which ended in June, as per a fiscal operations summary released by the Ministry of Finance. On the contrary, Pakistan kept its budget in surplus for the second consecutive year, the highest in 24 years, surpassing the IMF target. Islamabad generated a primary budget surplus of PKR 2.4 trillion along with the total revenues collected by the four provinces. Even though the Finance Ministry was trying hard to stay on the fiscal path, Pakistan's hopes to get the bailout were dented by provincial capitals, which were not under the control of the federal government. The overall fiscal deficit also reduced to 5.4 per cent of GDP or PKR 6.2 trillion, which was well below both the original target of 5.9 per cent. The finance secretary kept a tight check on the expenditure throughout the fiscal year. The IMF has set about 50 conditions overall under the USD 7 billion bailout package; some of those are monitored on a quarterly and annual basis and are linked with the approval of the loan tranches. The government has managed to achieve relative fiscal stability, but the official data showed that the federal government's net revenues were still PKR 1.2 trillion less than its needs for just two heads: interest payments and defence spending. The rest of the expenditures are incurred by taking more loans. Against a primary surplus target of PKR 2.4 trillion, the federal government reported a surplus of PKR 2.7 trillion, or 2.4 per cent of gross domestic product (GDP), according to the ministry. The provincial governments had given the understanding to the IMF and the federal government to generate PKR 1.2 trillion cash surpluses. However, the four provinces collectively generated a cash surplus of PKR 921 billion, missing the IMF target by PKR 280 billion. The FBR failed to collect any significant revenue under the Tajir Dost Scheme against the target of PKR 50 billion for the last fiscal year. Despite these shortfalls, the government is unlikely to face serious hurdles during the upcoming review talks — expected to begin next month — for the release of the next USD 1 billion tranche, due to progress on other critical benchmarks, the report said. The USD 7 billion package was agreed last year, and it has been instrumental in stabilising the economy of the country. (with PTI inputs) view comments First Published: August 06, 2025, 22:16 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
NDTV
2 days ago
- Business
- NDTV
Pakistan Misses 3 Out Of 5 IMF Targets Before 2nd Review Of $7 Billion Loan
Islamabad: Pakistan has missed three out of the five targets set by the International Monetary Fund (IMF) for the second review of the USD 7 billion bailout package, a media report said on Wednesday. According to a fiscal operations summary released by the Ministry of Finance, the provinces fell short of saving the targeted PKR 1.2 trillion in the last fiscal year, which ended in June, due to a rise in expenditures, The Express Tribune newspaper reported. The Federal Board of Revenue (FBR) also missed its two key conditions of collecting PKR 12.3 trillion in total revenues and PKR 50 billion from retailers under the Tajir Dost Scheme during the last fiscal year. However, Pakistan managed to meet an important target of generating a primary budget surplus of PKR 2.4 trillion along with the total revenues collected by the four provinces. This is the second consecutive year of primary surplus and the highest in 24 years, surpassing the IMF target. The Finance Ministry tried hard to stay on the fiscal path, but the setback came from the provincial capitals, which were not under the control of the federal government, the report said. The overall fiscal deficit also reduced to 5.4 per cent of GDP or PKR 6.2 trillion, which was well below both the original target of 5.9 per cent. The finance secretary kept a tight check on the expenditure throughout the fiscal year. The IMF has set about 50 conditions overall under the USD 7 billion bailout package - some of those are monitored on a quarterly and annual basis and are linked with the approval of the loan tranches. The government has managed to achieve relative fiscal stability, but the official data showed that the federal government's net revenues were still PKR 1.2 trillion less than its needs for just two heads: interest payments and defence spending. The rest of the expenditures are incurred by taking more loans. Against a primary surplus target of PKR 2.4 trillion, the federal government reported a surplus of PKR 2.7 trillion, or 2.4 per cent of gross domestic product (GDP), according to the ministry. The provincial governments had given the understanding to the IMF and the federal government to generate PKR 1.2 trillion cash surpluses. However, the four provinces collectively generated a cash surplus of PKR 921 billion, missing the IMF target by PKR 280 billion. The FBR failed to collect any significant revenue under the Tajir Dost Scheme against the target of PKR 50 billion for the last fiscal year. Despite these shortfalls, the government is unlikely to face serious hurdles during the upcoming review talks - expected to begin next month - for the release of the next USD 1 billion tranche, due to progress on other critical benchmarks, the report said. The USD 7 billion package was agreed last year, and it has been instrumental in stabilising the economy of the country.
Economic Times
2 days ago
- Business
- Economic Times
Pakistan falls short of 3 key IMF targets, missing revenue benchmarks for $7 billion bailout package's 2nd review
Pakistan falls short of 3 key IMF targets, missing revenue benchmarks for $7 billion bailout package's 2nd review Synopsis Pakistan has missed three key IMF fiscal targets due to provincial overspending and federal tax collection shortfalls, jeopardizing the USD 7 billion bailout package's second review. Despite this, the nation achieved a primary budget surplus exceeding IMF expectations, marking a 24-year high. Pakistan has missed out on three of its five major fiscal conditions set by the International Monetary Fund (IMF) for the second review of its USD 7 billion bailout package, The Express Tribune reported. ADVERTISEMENT According to The Express Tribune, the shortfall is attributed to provinces failing to generate the expected cash surpluses and the federal government falling short of tax collection targets. However, the Pakistgovernment expects that it would face minimal obstacles during its next month's review talks for the release of the next USD 1 billion tranche. A fiscal operations summary from the Pakistani Ministry of Finance revealed that the provinces were unable to save the targeted PKR 1.2 trillion in the last fiscal year, ending in June, due to a sharp rise in provincial expenditures, The Express Tribune reported. Similarly, Pakistan's Federal Board of Revenue (FBR) missed two key targets: collecting total revenues of PKR 12.3 trillion and PKR 50 billion from retailers under the Tajir Dost Scheme. The only silver lining in all the fallout is its primary budget surplus target of PKR 2.4 trillion, which was achieved alongside total revenues collected by the four provinces, The Express Tribune reported. ADVERTISEMENT This marks the second consecutive year of a primary surplus and the highest in 24 years, which has surpassed the IMF expectations, The Express Tribune Pakistani federal government has put the whole blame for the setbacks on provincial overspending while stating that it had maintained fiscal discipline. ADVERTISEMENT The overall fiscal deficit declined to 5.4 per cent of GDP (PKR 6.2 trillion), below the original target of 5.9 per cent, which is still not that significant, considering the economic crisis that the country is facing the government has maintained relative fiscal stability, official data shows that net revenues were still PKR 1.2 trillion short of covering interest payments and defence expenditures, with additional spending financed through borrowing, The Express Tribune reported. ADVERTISEMENT The federal government reported a primary surplus of PKR 2.7 trillion (2.4 per cent of GDP), exceeding the IMF collectively generated a cash surplus of PKR 921 billion, missing the IMF target by PKR 280 billion. Punjab recorded a surplus of PKR 348 billion, Sindh PKR 283 billion, Khyber-Pakhtunkhwa PKR 176 billion, and Balochistan PKR 113 billion, though each province reported statistical discrepancies due to additional or off-budget expenditures, The Express Tribune reported. ADVERTISEMENT Provincial tax collections totalled PKR 979 billion, exceeding IMF targets by PKR 58 billion. At the same time, the FBR fell short of its overall revenue target of PKR 12.32 trillion and collected negligible amounts under the Tajir Dost Scheme. Non-tax revenues, particularly from petroleum levies, totalled over PKR 5.6 trillion, with petroleum levy collections reaching PKR 1.22 trillion after recent rate the expenditure side, the federal government spent PKR 17.1 trillion, with current expenditures at PKR 15.8 trillion, up 15 per cent from the previous year, largely due to higher interest payments and defence costs rose to PKR 8.9 trillion, and defence spending reached PKR 2.2 trillion. After distributing PKR 6.9 trillion to provinces, federal net income stood at PKR 9.9 trillion, falling short of covering interest and defence outlays by PKR 1.2 trillion, The Express Tribune Finance Ministry attributed success in maintaining primary current expenditures within limits to lower subsidy releases, which were only 49 per cent of the allocated target. Federal development spending (PSDP) rose to PKR 1.05 trillion, a 43 per cent increase over the previous fiscal while Pakistan fell short on three key IMF conditions, the government's fiscal management and achievement of a primary surplus provide a measure of stability ahead of the upcoming review. The IMF has set about 50 conditions under the $7 billion bailout package; some of those are monitored on a quarterly and annual basis and are linked with the approval of the loan tranches. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates. NEXT STORY
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First Post
2 days ago
- Business
- First Post
Pakistan misses 3 out of 5 IMF targets ahead of second review of $7 billion bailout
Despite falling short on key revenue goals, including provincial savings and FBR collections, Pakistan surpasses IMF's primary surplus target, boosting chances for next loan tranche read more Pakistan has missed three out of the five targets set by the International Monetary Fund (IMF) for the second review of the $7 billion bailout package, according to a report on Wednesday. According to The Express Tribune report, citing fiscal operations summary released by the Ministry of Finance, the provinces fell short of saving the targeted PKR 1.2 trillion in the last fiscal year, which ended in June, due to a rise in expenditures. STORY CONTINUES BELOW THIS AD The Federal Board of Revenue (FBR) fell short of meeting two major targets last fiscal year: collecting PKR 12.3 trillion in total revenues and raising PKR 50 billion from retailers under the Tajir Dost Scheme. Despite these shortfalls, Pakistan achieved a key milestone by generating a primary budget surplus of PKR 2.4 trillion, supported by revenue contributions from all four provinces. This marks the second consecutive year of a primary surplus and the highest recorded in 24 years, exceeding the target set by the IMF, added the report. According to the report, the finance ministry tried hard to stay on the fiscal path, but the setback came from the provincial capitals, which were not under the control of the federal government. The overall fiscal deficit also reduced to 5.4 per cent of GDP or PKR 6.2 trillion, which was well below both the original target of 5.9 per cent. The finance secretary kept a tight check on the expenditure throughout the fiscal year. IMF conditions The $7 billion IMF bailout package comes with around 50 conditions, some of which are reviewed quarterly and annually, and are directly tied to the disbursement of loan tranches. While the government has achieved a degree of fiscal stability, official data reveals that net federal revenues fell short by PKR 1.2 trillion—insufficient to cover just two major expenses: interest payments and defence. The remainder of government spending continues to be financed through additional borrowing. STORY CONTINUES BELOW THIS AD Despite these challenges, the federal government exceeded its primary surplus target, reporting a surplus of PKR 2.7 trillion—equivalent to 2.4% of GDP—surpassing the IMF's benchmark, according to the Finance Ministry. The provincial governments had given the understanding to the IMF and the federal government to generate PKR 1.2 trillion cash surpluses. However, the four provinces collectively generated a cash surplus of PKR 921 billion, missing the IMF target by PKR 280 billion. The FBR failed to collect any significant revenue under the Tajir Dost Scheme against the target of PKR 50 billion for the last fiscal year. Despite these shortfalls, the government is unlikely to face serious hurdles during the upcoming review talks — expected to begin next month — for the release of the next $1 billion tranche, due to progress on other critical benchmarks, the report said. The $7 billion package was agreed last year, and it has been instrumental in stabilising the economy of the country. With inputs from agencies
