Budget deficit likely to swell by Rs3,797 billion in FY2022-23: sources

ISLAMABAD: Amid damages caused by floods in Pakistan, the budget deficit is likely to swell by Rs3,797 billion in the current fiscal year of 2022-23, ARY News reported, quoting sources within the finance ministry.

The provinces will not be able to Rs750 billion surplus to the federal government as per the IMF condition, this year due to devastating floods in Pakistan, the sources said.

They further said the provinces will not be able to give the surplus amount to the federal government due to extra expenses for the revival of the damaged structure due to floods.

Sources within finance ministry said that the province might not be able to give the agreed amount in FY2022-23 which can lead the budget deficit to Rs3,797.

Read more: ‘IMF to help Pakistan in coping with post-flood economic challenges’

Meanwhile, the Resident Representative to Pakistan – International Monetary Fund (IMF), Esther Perez Ruiz has said that the global financial institution will also help Pakistan face post-flood economic challenges.

While talking to ARY News, the IMF Resident Representative Esther Perez Ruiz said that the institution was aware of the difficulties being faced by Pakistan and standing alongside the flood victims.

Ruiz said that the IMF along with other relief institutions will continue assisting flood-hit Pakistan. She added that IMF was aware of the estimated loss to Pakistan due to flood disasters.