Flood destruction: IMF, Pakistan to revise budget targets

The recent floods in Pakistan have done immense destruction, approximately Rs 650 billion. Due to this reason, the government and the IMF are modifying their budgets.

The expected GDP growth of 4.2% in Pakistan is now likely to drop to between 3.5-3.9%. This will also mean that the government will then collect less than intended tax money. The target is decreasing to Rs 14 trillion instead of the originally planned Rs 14.13 trillion.

The development budget (PSDP) will remain approximately at Rs 1 trillion by the government, but may be released in small increments to better control costs. Part of the money is also being redirected between regions, such as Rs 20 billion redirected by FBR’s project.