Pakistan39;s taxheavy budget aims for IMF bailout approval
Budget could fuel public anger due to high tax targets
Finance minister expects IMF agreement in July

ISLAMABAD, June 14 Reuters Pakistan39;s plan to raise taxes in its 202425 budget and boost state revenues will help it win approval from the International Monetary Fund for a loan to stave off another economic meltdown, but could fuel public anger, a former finance official, experts and industrialists said.

The South Asian country has set a challenging tax revenue target of 13 trillion rupees 47 billion for the year starting July 1, a near40 jump from the current year, and a sharp drop in its fiscal deficit to 5.9 of GDP from 7.4 for the current year.

Pakistan had to reduce its fiscal deficit as part of negotiations with the IMF, with which it is discussing a loan of 68 billion, as it seeks to avert a debt default for an economy growing at the slowest pace in the region.

The budget is enough to get an IMF Programme, as long as … the budget is passed in the way it is presented, former finance minister Miftah Ismail said. But he said the revenue targets will be challenging, as will the growth target of 3.6.

The two cannot happen simultaneously, said Ismail, who as thenfinance minister successfully negotiated the revival of Pakistan39;s last Extended Fund Facility EFF programme in 2022.

Outside analysts largely concur. Emerging Market Watch39;s Metodi Tzanov believes the budget in its current form should…