IMF finds faults with the new budget
ISLAMABAD: The International Monetary Fund (IMF) has observed flaws in the new budget for the fiscal year 2023-24.
Through a short text message sent to journalists, the IMF official in Pakistan Esther Ruiz said that the draft of the FY24 Budget misses an opportunity to broaden the tax base in a more progressive way.
She said that the long list of new tax expenditures reduces further the fairness of the tax system and undercuts the resources needed for greater support for vulnerable BISP recipients and development spending.
The new tax amnesty runs against the program’s conditionality and governance agenda and creates a damaging precedent. Measures to address the energy sector’s liquidity pressures could be included alongside the broader budget strategy.
The IMF team stands ready to work with the government in refining this Budget ahead of its passage.
The stance of the IMF on the new budget would further delay the resumption of the stalled IMF program.
PM Shehbaz still optimistic of a deal with IMF
Prime Minister Shehbaz Sharif showed optimism about Pakistan’s chances of signing a deal with the International Monetary Fund (IMF) this month.
PM Shehbaz said that the coalition government has accepted all the conditions of the IMF and implemented them in letter and spirit.
Premier stated this on Sunday while addressing a ceremony in Lahore to inaugurate the Sports Complex.
Earlier, in an interview with Turkish news agency Anadolu in Ankara, PM Shehbaz appeared optimistic about signing a much-awaited deal with the IMF in June.
PM Sharif said Pakistan has completed all the terms and conditions of the ninth review of the IMF. Pakistanis can hear good news about the resumption of IMF loan this month, he added.
Premier said, “Pakistan has fulfilled all requirements of the IMF as prior actions.”
