Pak highlights critical risks to Budget 2024-25 in statement to Parliament

Pakistan's cash-strapped government has highlighted almost a dozen critical risks to next year's budget and medium-term outlook, including lower than estimated economic growth, unexpected climatic or natural disasters as well as continuing poor performance of state-owned entities.

In a written statement on the fiscal risks submitted to Parliament, Finance Minister Muhammad Aurangzeb and Secretary Imdadullah Bosal said a combination of three risks higher than the estimated interest rate, lower than non-tax revenue collection and higher subsidies had the most significant impact on fiscal variables across the board.

"The combination of reduced revenues, increased expenditure on subsidies, and potential financing needs due to higher interest rates lead to substantial fiscal deficit and higher debt stock, the Dawn newspaper quoted the statement as saying on Monday.

It underscored the interconnectedness of fiscal policy and the need for comprehensive approaches to address fiscal ...