Govt Budget and Expenses Don’t Match

The International Monetary Fund (IMF) has requested clarification regarding a reported Rs. 853 billion discrepancy in the accounts of Pakistan's federal and provincial governments for the fiscal year 2025-26. The Finance Ministry has been asked to provide more details about the difference. Of the total mismatch, Rs. 448 billion pertains to the federal government accounts, while Punjab reported a Rs.

266 billion gap. Officials explained that the discrepancy mainly stemmed from provincial investments in treasury papers, cash withdrawals before June 30, and expenses recorded after the financial year ended. Punjab officials added that their Rs. 266 billion mismatch was also due to differences in money inflows and outflows from commercial accounts and discrepancies in federal and provincial accounting methods.

Another factor was the delayed release of development funds, with many cheques issued before the end of June but the actual money withdrawn after the financial year. The incomplete implementation of the treasury single account was also contributing to the mismatch, as many government entities and authorities had yet to transfer their funds into the account.

The Finance Ministry assured the IMF that it would furnish additional information to explain the Rs. 853 billion discrepancy. However, this would not impact the government's reported primary budget surplus of 2.9 percent of GDP, a crucial condition under the IMF program. Pakistan anticipates the current IMF review talks to conclude on October 7.