ISLAMABAD: The government has budgeted Rs 696 billion from the International Monetary Fund (IMF) for next fiscal year, ie, 2023-24 - will have to either extend the scheduled end date of June 30 for the current Extended Fund Facility (EFF) programme or a new programme will be negotiated.

A total of Rs 6.874 trillion is budgeted from external resources for 2023-24 compared to the revised estimates of Rs 3.208 trillion in the outgoing fiscal year – a rise of 114 percent and almost 25 percent higher than the budgeted amount for the outgoing year. This includes Rs 1.305 trillion borrowing from commercial banks abroad against Rs521.5 billion in the revised estimates of the current year

External assistance figures have been shown in local currency in the budget documents contrary to previous budget documents when it was also provided in dollars.

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The government has budgeted Rs 592.480 billion under project loans for 2023-24 compared to Rs 266.537 billion for 2022-23 which was later revised to Rs 400.278 billion.

Under the head of programme loans the government has budgeted external assistance of Rs 771.366 billion for 2023-24 compared to Rs 1.243 trillion for 2022-23 which was later revised downward to Rs 856.447 billion.

The government has budgeted no assistance under the head of Saudi Arabia (oil facility) for next fiscal year against the revised 194.7 billion rupees in the outgoing fiscal year however it has budgeted (i) 870 billion rupee Time Deposits from the Saudi Arabia, almost double 447 billion rupees in the revised estimates of the outgoing fiscal year; and (ii) China Safe Deposits of 1.16 trillion rupees for 2023-24 compared to 596 billion rupees in the revised estimates of the outgoing fiscal year.

The government has budgeted Rs 290 billion for next fiscal year under the head of New Deposit UAE and Rs 580 billion under the head of New Deposit KSA.

Copyright Business Recorder, 2023