Pakistan Budget Tests Growth Push Against IMF Constraints (2)

Pakistan unveiled a budget aimed to bolster growth with tax cuts for businesses, while also making an effort to preserve fiscal gains amid rising oil prices.

In his speech to lawmakers in parliament, Finance Minister Muhammad Aurangzeb outlined a budget willing to boost taxes but also provide some tax relief and industrial incentives. The government is targeting 4% growth in the next fiscal year after the economy is estimated to have expanded 3.7% in the year through June, the strongest performance in four years.

With the fiscal deficit at its narrowest level in two decades, the government is under pressure ...