Pakistan has revealed a budget of 14.5 trillion Pakistani rupees as it grapples with a severe economic crisis. The majority of the budget will be financed through borrowing, according to Nikkei Asia. Finance Minister Ishaq Dar has stressed that the government has devised a “responsible budget.” However, experts and officials caution that this budget may not garner crucial support from the International Monetary Fund (IMF).
The country is currently facing high inflation, with rates reaching nearly 38 percent in May. In response, the central bank opted to keep its benchmark rate unchanged at a record 21 percent, stating that it believed inflation had reached its peak. Despite this, Pakistan’s foreign reserves only amount to about a month’s worth of coverage, putting the nation, with its population of over 230 million, in a challenging position. Consequently, Pakistan will likely have to rely heavily on China, a major bilateral creditor, for support.
