Pakistan has revealed its proposed economic targets for the 2023-24 financial year, according to an official source. 

The country aims for a 3.5% GDP growth target along with a projected inflation rate of 21%. The budget, set to be presented by Prime Minister Shehbaz Sharif’s government on Friday, arrives during Pakistan’s worst economic crisis, exacerbated by delayed funding from the International Monetary Fund (IMF). 

The nation has faced a severe balance of payments crisis, leading to a significant decline in its central bank’s foreign exchange reserves, which now cover only a month of controlled imports.

While these figures have been shared in preliminary meetings, adjustments may occur before Finance Minister Ishaq Dar presents the budget in parliament. 

The proposed budget’s total outlay is expected to reach 14.5 trillion Pakistani rupees ($50.70 billion), accompanied by a fiscal deficit target of 7.7% of GDP and a revenue collection goal of 9.2 trillion Pakistani rupees ($32.17 billion).

To review the numbers, Prime Minister Sharif is chairing a meeting of the National Economic Council. 

The budget announcement is of significant interest as the government must navigate between the IMF’s demanding fiscal adjustment reforms and the need to provide relief to the people ahead of the upcoming national election scheduled for November.

Pakistan’s GDP growth for the current fiscal year, ending on June 30, 2023, plummeted to 0.29% compared to the annual budget target of 5% and the central bank’s revised projection of 2%. 

Moreover, the country is grappling with soaring inflation, with a May inflation rate of 38% that ranks as the highest in Asia.