ISLAMABAD - Pakistan has slammed the International Monetary Fund (IMF) on Wednesday for allegedly intervening in the country's internal affairs, which is not the mandate of the international lender.
IMF Mission Chief for Pakistan Nathan Porter’s the other day had said in a statement, while the IMF does not comment on domestic politics, the Fund hopes "a peaceful way forward is found in line with the Constitution and the rule of law.”
However, State Minister for Finance and Revenue Aisha Ghaus Pasha has termed the IMF’s statement as interference in Pakistan’s internal affairs and said that the IMF mission chief’s statement is unusual. “Pakistan is acting according to the law,” she commented and termed it as ‘extraordinary’.
Talking to the media here, the State Minister hoped that Pakistan and IMF would reach a staff level agreement before the announcement of the federal budget to be unveiled on June 9. She further said that the delay is neither good for Pakistan nor for the Fund. She confirmed that Prime Minister Shehbaz Sharif has contacted IMF Managing Director Kristalina Georgieva for the loan programme revival. Talking about the upcoming budget, she assured that the budget would provide relief to the people as this will be an “election year budget”. “IMF allows targeted subsidies to Pakistan,” she said. She further said that the IMF program will end on June 30. She explained that the Finance Ministry did not sit with its eyes shut and claimed, ‘if the deal with the IMF is not be reached then there is always Plan B.’ “Our priority is the IMF programme,” the Minister of State for Finance clarified. According to the official, the government has shared the budget framework with the IMF after the Prime Minister had contacted the IMF Managing Director. The IMF has reportedly asked Pakistan to eliminate the dual exchange rate system and present a revised budgetary framework for the current fiscal year and the upcoming budget (2023-24) to reach a staff-level agreement. Pakistan and IMF have yet to reach a staff level agreement as both sides are continuously negotiating since January 31 this year. The government had met all prior actions of the IMF. The government has taken all tough decisions including increasing power and gas prices massively and imposing new taxation measures worth Rs170 billion.