ISLAMABAD: The International Monetary Fund (IMF) has projected an increase of 0.7 percent in the government expenditure for Pakistan from 19.2per cent of Gross Domestic Product (GDP) in 2023 to 19.9per cent in 2024.

According to the IMF report “Fiscal Monitor, Fiscal Policy in the Great Election Year”, the government gross debt for Pakistan is projected to decline from 77.1per cent of GDP in 2023 to 71.8per cent in 2024.

The Fund has projected a decline in the net debt for Pakistan from 72.1per cent of the GDP in 2023 to 67.9per cent in 2024.

The government revenue is projected at 12.5 per cent of GDP for 2024 and 12.4 per cent for 2025 against 11.4 per cent during the same period of 2023 and 12.1 per cent in 2022.

The Fund has projected the government’s primary balance at 0.4 per cent for 2024 against -0.9per cent in 2023.

Further, the government’s overall balance is projected at -7.4per cent for 2024 against -7.8per cent in 2023.

According to the report the country’s debt to average maturity in 2024 is estimated at 27.4 per cent of GDP.

There would be total gross financing need of about 23.7 per cent of GDP in 2024. Gross financing need is defined as the projected overall balance and maturing government debt in 2024. The projected interest rate – growth differential 2024-29 is -4.3per cent while the non-resident holding of general government debt, 2023 is projected at 32 per cent of the total.

The report noted that several economies with relatively high deficit levels are projected to undergo stronger fiscal consolidation over the medium term (for example, Pakistan).