ISLAMABAD, June 12 Reuters Pakistan39;s coalition government will present on Wednesday its budget for the fiscal year to June 2025 that analysts expect to set ambitious fiscal targets as it looks to strengthen the case for a new bailout deal with the International Monetary Fund.

The budget comes a day after the government said economic growth of 2.4 expected in the current year would miss a target of 3.5, although revenues were up 30 over last year, and the fiscal and current account deficits were under control.

While Pakistan is expected to stick to fiscal prudence under a new IMF programme, growth is expected to stay constrained, said Abid Suleri of the Sustainable Development Policy Institute think tank.

Many of the measures taken to achieve fiscal sustainability will impact growth negatively, at least in the near future, he added.

Pakistan is in talks with the IMF for a loan estimated to range from 6 billion to 8 billion, as it seeks to avert a default for an economy growing at the slowest pace in the region.

But a recent economic uptick, following stabilisation measures and falling inflation, as well as Monday39;s interest rate cut by the central bank, has made the government optimistic about prospects for growth.

The key policy rate could fall further this year and economic growth would continue to rise, Finance Minister Muhammad Aurangzeb, set to present his first budget, told reporters on Tuesday.

Markets will watch the budget for a target for proceeds…