Islamabad: Due to the delay in the staff agreement between the federal government and the International Monetary Fund (IMF), serious difficulties have been revealed in the preparation of the federal budget for the upcoming financial year 2023-24.
Sources in the Ministry of Finance and FBR say that there is difficulty in setting the budget estimates due to the lack of determination of the ratio of dollar to rupee rate along with financing to cover the deficit for the budget of the next financial year. Apart from these factors, the delay in completing the census also makes it difficult to make estimates.
According to the sources, the census has been extended for another fifteen days. Sources say that due to these factors, the budget strategy could not be prepared even at the document level. Sources said that the general strategy paper, which was supposed to be approved by the cabinet in the second week of April, is yet to be ready and the budget is likely to be prepared in the light of IMF guidelines.
Sources say that the failure of the loan program from the International Monetary Fund to get on track has also become a hindrance in the budget preparations, while the government will present the budget for the next fiscal year 2023-24 in the first week of June in the cabinet and parliament. There is a plan, but due to political and economic uncertainty in the country, the strategy paper in this regard could not be prepared yet.
According to sources in the Ministry of Finance, the delay in the staff level agreement with the IMF is also affecting the schedule for setting the budget limit for development and ongoing expenses. Sources further say that the meeting of the Annual Plan Coordination Committee has not been convened yet, the meeting of the National Economic Council regarding the budget will be held in the first week of May.
According to the sources, according to the initial schedule, the budget strategy paper was to be approved by the cabinet in the second week of April. It will be decided after the approval of the IMF.
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