After wasting about four months trying to secure cash injections from other nations, Pakistan has finally decided to try and revive the IMF program again. Compared to the huge spending of Rs 3.2 trillion on debt servicing and defence, only Rs 147 billion was spent on development. The spending on development is Rs 141 billion or 49 per cent less than that in the previous fiscal year. All the other expenses of the government amounted to Rs 1.3 trillion, also down by Rs 225 billion or 15 per cent.
Under the IMF program, Pakistan has committed to convert the primary deficit, calculated after excluding interest payments, into a surplus of 0.2 per cent of GDP, down from last fiscal year's 3.6 per cent. As a result of uncontrolled spending, however, the government will miss the deficit target agreed upon with the IMF.