Pakistan to see 4.1% growth this year, well below target

Tax collection target for fiscal year 2014-15 revised lower yet again

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) announced on Monday an agreement on next year’s budget which will ensure continuation of tight fiscal policies that have already started hurting the economic growth.

The mission chief announced 4.1% growth for this fiscal year, which is precisely 1% less than the official target.

Both sides also agreed to further lower this year’s tax target despite the government imposed 5 mini budgets.

IMF also allowed Pakistan to spend Rs 130 billion on security-related expenditures over and above normal expenditure.

Further, the finance minister said that Pakistan would not seek any waiver from the International Monitory Fund (IMF) in the seventh economic review.

"Pakistan and IMF have successfully completed 7th review of the extended fund facility paving the way for release of next tranche of $506 million to Pakistan by June this year," Dar said.

He said it is for the first time that Pakistan has reached the level of 7th review with IMF under any programme.

“We are determined to overcome the economic crisis and see the improvement in economic situation of the country.”

However, he cautioned that Pakistan still has to go a long way in improving its economic status.

Dar claimed that the progress on Quantitative Performance Criteria, net international and domestic assets as well as borrowing from the central bank was going as planned and added that the inflation rate is also witnessing a decline.