International Monetary Fund (IMF) has warned that Pakistan’s public debt may rise to 90% of total GDP with the coronavirus lockdown expected to cut down Pakistan’s tax revenue by Rs 895 billion.
The report issued by IMF projects that Pakistan’s public debt may amount to Rs 37.7 trillion by June this year. The report further suggests that Pakistan may have to resort to increasing its collection of petroleum levy by 65% to Rs 489 billion and tax collection by 31% to Rs5.1 trillion in the next fiscal year, in order to keep afloat the $6 billion loan program.
Additionally, the Federal Board of Revenues (FBR)’s tax collection is expected to fall by Rs 895 billion and is projected to stand at only Rs3.908 trillion instead of Rs 4,803 billion.
The IMF, for the next fiscal year, has projected the primary budget deficit at 0.4% of GDP or Rs 191 billion.
Earlier, on Thursday, IMF had approved the disbursement of $1.386 billion under the Rapid Financing Instrument in a meeting of its executive board members in Washington DC to address the economic impacts of the COVID-19 pandemic.
