Public debt may increase to 90pc of GDP.

Pakistan's public debt may rise to 90 percent of national economy or Rs37.7 trillion by June this year and its balance of payments situation may worsen due to severe health and economic shocks in the aftermath of the deadly pandemic, a new International Monetary Fund (IMF) report reveals.

In its report, the IMF has disclosed that Pakistan will have to increase its collection of petroleum levy by 65 percent to Rs489 billion and tax collection by 31 percent to Rs5.1 trillion in the next fiscal year, if the country is keen to keep the troubled $6-billion loan programme on track.

For the current fiscal year, the IMF has projected Federal Board of Revenues (FBR)'s tax collection at only Rs3.908 trillion, lower than even the last fiscal year.

As against the original target of Rs5.555 trillion, the FBR is now projected to collect Rs1.65 trillion less than the target due to the impact of Covid-19, inefficiency of the revenue board and setting of an unrealistic target.

The IMF report also revealed that contrary to the prime minister's announcement of Rs1.25-trillion economic relief package, the actual size of the "fiscal stimulus package (was) worth 1.2 percent of GDP (Rs500 billion)".

Despite acknowledging that next fiscal year 2020-21 will also be tough for Pakistan's economy, the IMF has sought fiscal consolidation efforts to the tune of...