Pakistan reaches $7 bn aid deal with IMF
==========

The International Monetary Fund (IMF) has reached a new $7 billion loan deal with Pakistan to bolster its faltering economy. In exchange, Pakistan has agreed to conduct further reforms, including widening its low tax base. Pakistan's economy has been struggling due to political chaos, monsoon floods, mismanagement, and the global economic downturn. The new three-year deal, still pending approval by the IMF Executive Board, aims to stabilize the macroeconomy and promote stronger and more inclusive growth. Pakistan aims to raise nearly $46 billion in tax revenue during the 2024-25 fiscal year, a 40 percent increase from the previous year. The government plans to reduce its fiscal deficit by 1.5 percent to 5.9 percent and address its huge public debt of $242 billion. However, analysts criticize the reforms as surface-level and not addressing underlying problems. Protests have already occurred over tax and bill hikes introduced in last month's budget, and more demonstrations are expected. The IMF anticipates two percent growth in Pakistan's economy this year, with inflation expected to reach nearly 25 percent year-on-year.

#Pakistan #Imf #Economy #Loan #TaxReforms

https://www.legit.ng/business-economy/economy/1602028-pakistan-reaches-7-bn-aid-deal-imf/