The substantial jump in interest payments to PKR 5.52 trillion from PKR 3.58 trillion in the corresponding period last year contributed significantly to this widening deficit.
Projecting stagnant tax-to-GDP ratios over the next five years, the IMF estimated the figure, which is almost 1 per cent higher than 6.5 per cent target set by the federal government.
Meanwhile, Pakistan is contesting the fiscal gap in achieving the primary deficit. Pakistani authorities have asked the IMF for incorporating flow of reduction under the revised Circular Debt Management Plan (CDMP) and reduced the amount of required additional subsidy of Rs 605 billion again