Islamabad June 13 2022: Pakistan’s plan to trim its deficit by slashing spending may not be enough to convince the International Monetary Fund to resume its loan program, according to economists at Citigroup Inc.
Warning comes before IMF staff due to meet Pakistan officials
The tax-to-GDP ratio is budgeted to rise to 9.2% of gross domestic product in the year starting July 1 from 8.6%, which seems low versus Pakistan’s emerging market peers and its own history, Johanna Chua and Gaurav Garg wrote in a note to clients Monday. Interest payments are estimated to consume about 44% of revenue.
