Pakistan Takes Emergency Steps to Patch Budget

By Anonymous

New government moves to cut spending and raise taxes as it seeks rescue from fiscal crunch

In Pakistan, China and the U.S. are clashing over China’s One Belt, One Road initiative. To understand what’s at stake, it helps to take a look at why China is in Pakistan in the first place.

ISLAMABAD—Pakistan’s new government introduced what it called an emergency budget just weeks after coming into office, introducing spending cuts and tax increases to grapple with budget and trade deficits.

The measures announced on Tuesday by Prime Minister Imran Khan’s administration could get Pakistan into better fiscal shape to meet the demands of a possible bailout from the International Monetary Fund, a step expected by many economists.