IMF wants Pakistan to become “Sri Lanka”
ISLAMABAD: Finance Minister Senator Muhammad Ishaq Dar finally disclosed that the IMF wants Pakistan to become Sri Lanka.
Addressing a press conference on Thursday in Islamabad Dar said that geopolitics was going on against Pakistan as some elements are dreaming of default of Pakistan.
Senator Ishaq Dar said that Pakistan will not seek rescheduling of the Paris Club loans and will pay them timely. He also said that the government will pay the international bonds.
Finance Minister became aggressive today as the IMF has raised objections about the new budget of Pakistan for the fiscal year 2023-24, starting from July 1, 2023.
He also said that the State Bank of Pakistan was an entity of Pakistan and not any international organization (hinting toward the IMF).
The press conference of the minister indicated that the coalition government and the IMF relationship have turned sour and there was no chance of the resumption of the IMF loan in the coming days.
IMF finds faults with new budget
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.
