Business Recorder
ISLAMABAD: The government has committed to the International Monetary Fund (IMF) that allocations for new projects in the fiscal year 2027 budget will remain below 10 percent of the total, as much of the limited fiscal space will be required to complete ongoing projects. This was noted in the Letter of Intent (LoI) submitted to IMF which is signed by Muhammad Aurangzeb Minister of Finance and Revenue and Jameel Ahmad Governor of the State Bank of Pakistan. READ ALSO: IMF sets 11 new conditions, including parliamentary approval of FY2027 Budget The Fund report noted that Public Sector Development Programme (PSDP) for next fiscal year 2027 is projected at Rs 986 billion against Rs 873 billion projected for the outgoing fiscal year. Pakistani authorities informed the Fund that a new project appraisal framework for the PSDP has been finalised, which will be presented to ECNEC for approval by end-June 2026. “We expect that new project allocations will be less than 10 percent of the total in the FY27 budget, as much of the limited fiscal space will be needed to complete existing projects. We are revising our scorecard-based system for project selection to: (i) reduce the number of overlapping criteria; (ii) introduce negative marking for projects with negative externalities; and (iii) increase the weight on climate-related criteria,” LOI noted. Copyright Business Recorder, 2026
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