IMF projects FY25 defence budget at Rs2.152trn

ISLAMABAD: Pakistan’s defence budget for next fiscal year has been projected by the International Monetary Fund (IMF) in second and final review documents of the Stand-By Arrangement at Rs 2,152 billion – a 19.29 percent increase over Rs 1,804 billion budgeted for the current fiscal year.

Business Recorder requested the military media wing through WhatsApp whether the IMF’s projections matched its total budget requirements for next year. No response was received till the filing of this report.

The IMF estimates the defence allocation as 1.72 percent of Gross Domestic Product (GDP) and with nominal GDP (market prices) estimated at Rs 124,813 billion for next fiscal year (against Rs 106,577 billion for the ongoing fiscal year).

Talks with IMF on next phase of engagement this week

Current expenditure (federal plus provincial) as per IMF documents has been projected at Rs 22,037 billion for next fiscal year, which is 15.09 percent higher than Rs 19,146 billion budgeted in the current fiscal year.

Federal current expenditure has been projected at Rs 16,712 billion for next year, 14.8 percent higher as opposed to Rs 14,555 billion for the outgoing fiscal year - 13.3 percent of the GDP.

Interest payments as a component of current expenditure have been projected at Rs 9,787 billion for next fiscal year as compared to Rs 8,602 billion for the ongoing fiscal year - an increase of 13.7 percent.

Development expenditure and net lending has been projected at Rs 2,673 billion for next fiscal year against Rs 2,179 billion for the current fiscal year – a rise of 22.67 percent.

Public Sector Development Program (PSDP) has been projected at Rs 2,590 billion for next fiscal year (federal Rs 890 billion and provincial Rs 1,700 billion), 22.86 percent higher than Rs 2,108 billion for the current fiscal year (federal Rs 782 billion and 1,282 billion).

Copyright Business Recorder, 2024