ISLAMABAD: The International Monetary Fund (IMF) seeks changes in the new federal budget announced on June 10, 2022, for the fiscal year 2022-23.
IMF Resident Director in Pakistan Esther Perez Ruiz said, “We note the submission of the draft budget to the National Assembly last Friday. Discussions with the authorities continue to obtain more clarity on certain revenue and spending items and allow for a full assessment.”
She, however, said that the IMF’s preliminary estimate is that additional measures will be needed to strengthen the budget and bring it in line with key program objectives. IMF Resident Director further said that IMF staff stand ready to continue to support the authorities’ efforts in this respect and, more generally, in the implementation of policies to promote macroeconomic stability.
Pakistan is seeking resumption of $6 billion IMF loan which has been stalled since March 2022, when then Prime Minister Imran Khan capped oil prices in violation of his government’s agreement with the Fund.
The new government has also requested IMF to enhance loan amount to $8 billion along with one-year extension in tenure of the loan.
In a recent statement, Finance Minister Miftah Ismail has himself admitted that the IMF officials were not happy with the new budget. He, nonetheless, said talks with IMF will continue to ensure resumption of loan programme.
