Key facts
- Pakistan's budget prioritizes defense spending and IMF targets.
- Pakistan's defense allocations increased by 18%.
- Pakistan's development funds are capped.
- Pakistan aims for 4% economic growth.
- Pakistan projects 8.2% inflation.
- Egypt's budget deficit widened to EGP 1.12 trillion in July-April.
- Egypt's deficit represents 5.3% of GDP.
- Egypt's tax revenues increased by 29%.
- Egypt's non-tax revenues increased by 70%.
- Egypt's interest payments surged 22% year-on-year.
- Egypt's interest payments consumed 92% of tax revenues.
Pakistan's finance minister has presented a new budget that places a strong emphasis on defense spending and meeting International Monetary Fund (IMF) targets, while development funds remain capped. The budget includes an 18% increase in defense allocations. The government aims to achieve 4% economic growth and has projected an inflation rate of 8.2% for the upcoming period.
In parallel, Egypt's budget deficit has expanded to EGP 1.12 trillion in the period from July to April, which constitutes 5.3% of the country's Gross Domestic Product (GDP). This widening deficit occurred despite substantial increases in government revenue. Tax revenues saw a 29% rise, and non-tax revenues jumped by 70%, largely attributed to income from the Alam El Roum Project. However, the government's interest payments surged by 22% year-on-year, consuming a significant portion of its earnings, specifically 92% of total tax revenues.