Pakistan’s government has acknowledged that unemployment has surged to 10.3%, up from 6.3% three years ago, according to World Bank estimates. Finance Minister Muhammad Aurangzeb and Secretary Finance Chaudhry Imdad Ullah Bosal briefed the National Assembly Standing Committee on Finance on the country’s macroeconomic conditions and the new International Monetary Fund (IMF) programme.
The government expects a slight increase in inflation in the coming months, despite imposing significant financial burdens on individuals through higher taxes and increasing the cost of living. The IMF has set prior actions, including adjustments in electricity and gas prices and a primary budget surplus of 1% of GDP.
The government aims to strike a deal with the IMF this month, exceeding $6 billion, with the program lasting between 36 to 39 months. The finance minister thanked the provincial chief ministers for their cooperation in reaching a deal on agricultural income tax.
The briefing painted a bleak picture, suggesting that living conditions for the people would not improve soon. The government is working to rationalize spending to address the fiscal deficit and reduce inflationary pressures in the short to medium term.
