What Happened: The government of Pakistani Prime Minister Imran Khan on June 11 presented its plans for a 7.04 trillion-rupee federal budget ($46.7 billion) for the fiscal year that begins in July and ends in June 2020, Reuters reported.
Why It Matters: The budget proposes additional taxes and other austerity measures to meet conditions set by the International Monetary Fund (IMF) for getting a $6 billion bailout. Pakistan historically has struggled to collect tax revenues so meeting its tax targets will be tricky for the government.
Background: Khan's administration was forced to seek what would be Pakistan's 13th IMF bailout since the late 1980s to stabilize an economy that has seen growth plunge while teetering on the verge of a balance of payments crisis. The rupee has lost about a third of its value this year and inflation has jumped above 9 percent.
Read More:
- Pakistan: The Political Cost of Islamabad's New IMF Loan (May 13, 2019)
- Pakistan Trudges Along a Familiar Economic Path (Sept. 21, 2018)
- What Pakistan's New Prime Minister Faces in Power (Aug. 15, 2018)
