Pakistan targeting fiscal deficit of 6.54% next fiscal year

In this handout photograph, taken on April 13, 2023, Pakistan Finance Minister Ishaq Dar gestures during his address at the National Assembly in Islamabad. (Photo courtesy: Twitter/NAofPakistan)
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Updated 09 June 2023
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Pakistan targeting fiscal deficit of 6.54% next fiscal year

  • The budget needs to satisfy the IMF to secure the release of stuck bailout money
  • Government targeting primary surplus at 0.4% of GDP, finance minister says

ISLAMABAD: Pakistan's government is targeting a fiscal deficit of 6.54% of GDP for the 2023-24 fiscal year, the finance minister said in his budget speech on Friday, much wider than the current year's original estimate of 4.9%.

The budget needs to satisfy the IMF to secure the release of stuck bailout money for the crisis-struck country, which is due to hold a general election by November.

The government was targeting primary surplus at 0.4% of GDP, the finance minister said. 

"This is not an election budget. This budget is for the success of the country, it has no political elements in it," Ishaq Dar said on the floor of the house.

For the next year, GDP growth had been budgeted at 3.5 per cent, Dar said, calling it a “modest target.”

The country’s economy has suffered record high inflation and an economic slowdown compounded by devastating floods last year and a failure so far to unlock crucial finances from the International Monetary Fund. The IMF had demanded a number of prior actions from Pakistan, including reversing subsidies, a hike in energy and fuel prices, jacking up its key policy rate, a market-based exchange rate, arranging for external financing and raising over 170 billion rupees ($613 million) in new taxation.

“Owing to the depreciating value of the rupee and the rapid increase in interest rates, the economic woes of the country increased but the government adopted the policy of saving the state instead of saving political interests,” Dar said in his budget speech. 

Pakistan's Prime Minister Shehbaz Sharif in a televised address to his cabinet on Friday reiterated that he was hopeful that the agreement with the IMF would go to its board for approval this month.

He added that the United Arab Emirates, Saudi Arabia and China had been "very helpful" in recent months in providing funding to Pakistan.

The IMF said earlier this week that it was discussing the budget with Pakistan's government. Sharif's government is hoping to persuade the IMF to unlock at least some of the $2.5 billion left in a $6.5 billion programme that Pakistan entered in 2019 and which expires at the end of this month.


Pakistan opposition to hold protest today over jailed ex-PM Khan’s deteriorating eye condition

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Pakistan opposition to hold protest today over jailed ex-PM Khan’s deteriorating eye condition

  • A court-appointed lawyer this week visited Imran Khan at prison and recommended independent ophthalmology review of his right eye
  • Information Minister Attaullah Tarar said Khan party’s narrative has ‘fallen flat on its face’ after ex-PM voiced ‘satisfaction’ with facilities

ISLAMABAD: Pakistan’s opposition alliance has announced a sit-in outside the Parliament House in Islamabad today, Friday, over jailed former prime minister Imran Khan’s deteriorating eye condition, following a rare prison visit by a Supreme Court-appointed lawyer this week.

Barrister Salman Safdar, who was appointed ‘amicus curiae,’ or friend of the court, visited Khan at Rawalpindi’s Adiala jail on Feb. 10 and filed a detailed report on his living conditions and health, which was made public on Thursday.

The report stated that in view of the seriousness of Khan’s ocular condition, “it is imperative that the seriousness of the condition be independently ascertained without delay.” There was no immediate response from prison authorities on the findings.

The Tehreek-e-Tahafuz-e-Ayin-e-Pakistan opposition alliance late Thursday demanded that Khan be transferred to Al-Shifa Hospital and announced a sit-in outside parliament until the former prime minister is allowed treatment in the presence of his personal physicians.

“The sit-in will be held tomorrow,” Mahmood Khan Achakzai, the head of the opposition alliance, told reporters in Islamabad, adding that they will peacefully lay down all demands at the sit-in. “If, God forbids, something happens, then the government will be responsible for that.”

Khan, 73, has been in custody since August 2023 in connection with multiple cases that he and his party describe as politically motivated. The government denies the allegation.

Concerns about Khan’s health have resurfaced in recent weeks after authorities confirmed he had been briefly taken from prison to a hospital in Islamabad for an eye procedure. The government said at the time his condition was stable, while Khan’s family and his Pakistan Tehreek-e-Insaf (PTI) political party complained they had not been informed in advance and alleged he was being denied timely and independent medical access.

The issue was then taken up by the Supreme Court earlier this week, which tasked Safdar, who has represented Khan in the past, with visiting the ex-premier and submitting a written report.

According to a medical condition report from the Pakistan Institute of Medical Sciences (PIMS), dated Feb. 6, 2026 and referenced in Safdar’s court filing, Khan was diagnosed with “right central retinal vein occlusion” after reporting reduced vision in his right eye.

The report states that he underwent anti-VEGF intravitreal injection treatment at PIMS and was discharged with follow-up advice.

However, in his interaction with Safdar, Khan said he had experienced “rapid and substantial loss of vision over the preceding three months” and claimed his complaints had not been addressed promptly while in custody. He further stated that despite treatment, he had been left with “only 15 percent vision in his right eye.”

Safdar’s report notes that the former premier appeared “visibly perturbed and deeply distressed by the loss of vision and the absence of timely and specialized medical intervention.” The amicus also recommended that the Supreme Court consider directing involvement of Khan’s personal physicians or other specialists of his choice, warning that “any further delay poses a serious risk to the Petitioner’s well-being.”

Beyond medical concerns, the report addressed Khan’s confinement conditions, noting that he expressed “satisfaction regarding his safety and security within the cell-block,” as well as contentment with basic amenities and food provisions.

Responding to the report, Information Minister Attaullah Tarar rejected claims of mistreatment, saying the “narrative being propagated to international media” by Khan’s family had “fallen flat on its face.”

He said the prison report on Khan’s daily routine and diet had removed any ambiguity and maintained that all facilities were available to the former premier, who he said enjoyed privileges “more than any other prisoner.” His X post did not address the allegations on Khan’s health issues.