Budget delay

THE government has delayed the announcement of the budget for the next fiscal year by a little over a week to June 10, presumably due to lingering differences with the IMF over certain expenditure proposals the lender thinks could undermine progress on its $7bn funding programme. For its part, the government considers the contested expenditures critical to providing relief to the middle class, which is burdened with heavy taxes and elevated cost of living, as well as to strengthening Pakistan’s military defences against India. After multiple inconclusive rounds of discussions on the budget proposals for the coming year, the IMF mission left the country, agreeing to continue talks on tax measures and expenditures virtually over the next week. Following its visit, the lender issued a statement calling the discussions with Pakistani authorities on the “budget proposals and broader economic policy, and reform agenda supported by the 2024