Thursday, July 7, 2022

IMF says previous Pakistani government violated deal by giving subsidy

By providing fuel subsidies, the Pakistani government went against the terms of the cooperative agreement said IMF.

Doha was the location of the seventh round of review discussions with Pakistan’s IMF mission. Miftah Ismail, Pakistan’s Minister of Finance, served as the delegation’s leader. During the discussions, both the financial condition for the previous fiscal year (2022) and the suggested actions for the forthcoming fiscal year (2023) were discussed.

The International Monetary Fund (IMF) has voiced its worry about the current state of the country’s budget and current account deficits and has asked for the removal of subsidies on gasoline and electricity. In addition, the IMF recommended making changes to the country’s fiscal deficit and current account.

Nathan Porter, the Chief of Mission for the International Monetary Fund, stated that the previous government broke the agreement by providing the subsidy.

Read Also: Miftah Ismail leaves for Doha for final meetings with IMF

It is important to point out that the PML-N government has not taken the program that was offered by the IMF in the negotiations. The International Monetary Fund has made the payment contingent on increasing the rates of electricity, gasoline, and diesel fuel, however, the federal government under the leadership of the PML-N has been reluctant to comply with this condition.

However, the International Monetary Fund and Pakistan have agreed to continue talking about Pakistan’s financial situation. Pakistan’s Foreign Minister Bilawal Bhutto Zardari has criticized the IMF’s rescue package as being out of date and has emphasized the need for a new program.

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