International Monetary Fund (IMF) on Monday said there was “no concept of suspension” in their programs and that she will continue support Pakistan and engage further “once in new government formed” in the country.
The statement of the anti-crisis lender from Washington was made against the backdrop of political chaos. in country, especially in in aftermath of Dissolution of President Dr. Arif Alvi of National Assembly after dismissal of in no-confidence against Prime Minister Imran Khan the same day.
According to the IMF representative in Pakistan, the Fund will attract in policy aimed at “promoting macroeconomic stability and studying intentions participation in the program with in new government.
Following the announcementMinistry of Finance also issued a press release stating that the Finance Department and the IMF are in exchange of data and discussion of reforms as part of of Extended Financing Facility (EFF).
“There is no truth talk about [the] suspense of [the IMF] program. The IMF confirmed the same and also clarified that it remains is committed to Pakistan’s macroeconomic stability,” the statement said. added.
The IMF has expressed its reservations over in government recently announced amnesty scheme and general doubts over in financial impact and funding sources of in prime minister relief package on electricity and gasoline prices.
Also read: IMF approves $6 billion loan for Pakistan
dawn Earlier it was reported that the mission And government authorities are unlikely to complete the ongoing seventh review of EFF of $6 billion coming soon and may lead to payoff of about $1.9 billion worth of two tranches close to federal budget due in June.
mission was completely dissatisfied with arguments put forward in service of in money- whitening scheme for industrial sector.
Fund critical of third tax amnesty scheme introduced government despite the recent rejection of tax distortions by removing the goods and services tax exemption as part of of mini-budget agreed in accordance with the sixth review, which led to a revival of EFF after a nine-month suspension and then payout of over $1 billion contribution.
Negotiation on Seventh review of US$6 billion Extended Financing Facility launched. on March 4th. The fund was concerned over “one step forwardtwo steps back” an approach of in government on critical reforms that have serious budget consequences forward.
There are three critical areas, including tax amnesty non-targeted subsidy on oil products and general subsidy on electricity tariffs. They are estimated to drive home budget account – the gap between income and expenses minus debt service – from the target level of 25 billion rupees in surplus of about 650 billion rupees in deficit by the end of June, when current fiscal year ends.
Pakistan has received little over $3 billion out of $6 billion worth of 39-month IMF program. The Foundation has previously expressed concern over expansionist policy adopted in 2021-22 federal budget, which he said created fiscal imbalances. leading to the introduction of mini-budget in December to eliminate these slippages.
IMF in In June 2019, a $6 billion three-year loan was approved “for support Pakistan’s economic plan aimed at returning a “sustainable growth country economy and improving standards of a life”.
39-month IMF program due to end in September.
Category: Pakistan, Business, continue, Deal, Government, IMF, place, policy, Support
