{"id":6701,"date":"2025-05-23T07:50:43","date_gmt":"2025-05-23T07:50:43","guid":{"rendered":"https:\/\/www.newsmakers.com.pk\/en\/?p=6701"},"modified":"2025-05-23T07:50:46","modified_gmt":"2025-05-23T07:50:46","slug":"pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere","status":"publish","type":"post","link":"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/","title":{"rendered":"Pakistan Prioritizes Defence Spending as IMF Demands Budget Cuts Elsewhere"},"content":{"rendered":"\n<p><strong>Date: May 23, 2025 | By: NewsMakers Monitoring Desk<\/strong><\/p>\n\n\n\n<p>In view of ongoing regional tensions, the Government of Pakistan has decided to increase its defence budget in the upcoming fiscal year. Defence remains the only sector exempt from spending cuts, while all other areas face stringent conditions set by the International Monetary Fund (IMF).<\/p>\n\n\n\n<p>Sources reveal that negotiations with the IMF have failed to secure significant relief for salaried individuals, property owners, the beverage industry, and exporters. The IMF has made it clear that tax collection targets will only be accepted if the government significantly reduces its overall expenditures.<\/p>\n\n\n\n<p>The IMF delegation, led by Jihad Azour, Director of the Middle East and Central Asia Department, is set to conclude its visit today (Friday). During the discussions, Prime Minister Shehbaz Sharif and his economic team requested the deferment of proposed new taxes\u2014such as an increase in federal excise duty on fertilizer from 5% to 10% and a new 5% tax on pesticides. Approval of this request is expected.<\/p>\n\n\n\n<p>Before the Finance Bill 2025 is passed into law, all conditions will be finalized with the IMF to minimize political criticism during the budget\u2019s approval. A senior government official confirmed that in the coming years, revenue collection will play a decisive role in shaping Pakistan\u2019s economic direction.<\/p>\n\n\n\n<p>The Federal Board of Revenue\u2019s (FBR) tax collection target for the next budget is expected to exceed PKR 14.1 trillion, contingent on the Ministry of Finance\u2019s ability to reduce its spending proportionately. However, the defence budget will remain unaffected and is set to be increased to meet national security needs.<\/p>\n\n\n\n<p>Another opportunity for reducing expenditures lies in managing debt repayments. The Ministry of Finance and IMF have estimated debt servicing at PKR 8.7 trillion, but efforts are underway to bring this down to between PKR 8 and 8.2 trillion.<\/p>\n\n\n\n<p>The IMF has also called on provincial governments to cut their expenditures and boost revenue generation to help limit the national fiscal deficit.<\/p>\n\n\n\n<p>Additionally, a government official confirmed that Pakistan has arranged \\$1 billion in commercial financial support within the current fiscal year (by June 2025), which is expected to bolster the country\u2019s foreign exchange reserves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Date: May 23, 2025 | By: NewsMakers Monitoring Desk In view of ongoing regional tensions, the Government of Pakistan has decided to increase its defence budget in the upcoming fiscal year. Defence remains the only sector exempt from spending cuts, while all other areas face stringent conditions set by the International Monetary Fund (IMF). Sources &hellip;<\/p>\n","protected":false},"author":3,"featured_media":6702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6701","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-international"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pakistan Prioritizes Defence Spending as IMF Demands Budget Cuts Elsewhere<\/title>\n<meta name=\"description\" content=\"Amid rising regional tensions, Pakistan boosts its defence budget while negotiating tough IMF terms. 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Other sectors face spending cuts as talks on tax relief remain stalled.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/\" \/>\n<meta property=\"og:site_name\" content=\"NewsMakers-Daily Latest Urdu Breaking News Updates\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/zaheerahmad11\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-23T07:50:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-23T07:50:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.newsmakers.com.pk\/en\/wp-content\/uploads\/2025\/05\/army-man-1.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"468\" \/>\n\t<meta property=\"og:image:height\" content=\"266\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Zaheer Ahmad\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ZaheerAhmad17\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Zaheer Ahmad\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/\"},\"author\":{\"name\":\"Zaheer Ahmad\",\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/#\/schema\/person\/e8e03aad4dbf31da89497394f3f2754a\"},\"headline\":\"Pakistan Prioritizes Defence Spending as IMF Demands Budget Cuts Elsewhere\",\"datePublished\":\"2025-05-23T07:50:43+00:00\",\"dateModified\":\"2025-05-23T07:50:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/\"},\"wordCount\":362,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.newsmakers.com.pk\/en\/wp-content\/uploads\/2025\/05\/army-man-1.webp\",\"articleSection\":[\"International\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/\",\"url\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/\",\"name\":\"Pakistan Prioritizes Defence Spending as IMF Demands Budget Cuts Elsewhere\",\"isPartOf\":{\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/international\/pakistan-prioritizes-defence-spending-as-imf-demands-budget-cuts-elsewhere\/6701\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.newsmakers.com.pk\/en\/wp-content\/uploads\/2025\/05\/army-man-1.webp\",\"datePublished\":\"2025-05-23T07:50:43+00:00\",\"dateModified\":\"2025-05-23T07:50:46+00:00\",\"author\":{\"@id\":\"https:\/\/www.newsmakers.com.pk\/en\/#\/schema\/person\/e8e03aad4dbf31da89497394f3f2754a\"},\"description\":\"Amid rising regional tensions, Pakistan boosts its defence budget while negotiating tough IMF terms. 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