ISLAMABAD: The International Monetary Fund (IMF) has projected a decrease in the government gross debt for Pakistan from 74 percent of gross domestic product (GDP) in 2021 to 71.3 percent in 2022 and projected further decline to 66.8 percent in 2023.
According to the IMF report, “Fiscal Monitor, Fiscal Policy from Pandemic to War” the net debt for Pakistan is projected to decrease to 65.4 percent of the GDP in 2022 against 66.4 percent in 2021. The net debt is projected to further decline to 61.7 percent in 2023.
The government revenue is projected at 12.6 percent of GDP for 2022 and 12.9 percent for 2023 against 12.5 percent during the same period of 2021 and 13.3 percent in 2020.
The Fund has projected government primary balance at -1.0 percent for 2022 against -1.1 percent in 2021. Further, the government overall balance is projected at -5.8 percent for 2022 against -6.1 percent in 2021.
The report has projected government expenditure to decrease to 18.4 percent of GDP in 2022 and 17.1 percent in 2023 compared to 18.6 percent in 2021. According to the report, the country’s debt to average maturity in 2022 is estimated at 29.2 percent of GDP. There would be total financing need of about 27.7 percent of GDP in 2022.
Copyright Business Recorder, 2022