(Islamabad): The International Monetary Fund (IMF) has said that despite austerity measures in Pakistan, government spending has increased and Pakistan’s debt burden has reached 87.2% GDP.
Corona Monitoring Report released by the International Monetary Fund (IMF) states that expenditures have increased by 1% in 2020 as compared to 2019 and the fiscal deficit is expected to remain at 6.7% next year.
The IMF report on Pakistan further states that government spending has increased from 22% this year to 23%. In 2019, the debt burden was 85.6 percent of the economy which has now risen to 87.2 percent. This debt burden is likely to be 86% of GDP while under Pakistani law, domestic debt should not exceed 60% of the economy.
The Corona Monitoring Report further states that Pakistan’s economy will improve and grow gradually in 2023. Debt expenditure and fiscal deficits are also expected to decline with tax revenues accounting for 17.7% of the economy and debt 78.3% in 2023.