IMF bars Pakistan’s govt from releasing supplementary grants

Pakistan IMF

ISLAMABAD: The International Monetary Fund (IMF) has instructed Pakistan’s interim government to refrain from releasing supplementary grants for any unbudgeted spending until a new government is formed after the general election on February 8.

According to sources, the Finance Division has written a letter to all ministries and divisions, reminding them of the commitments made with the IMF under the stand-by agreement (SBA).

Pakistan, which earlier received $700 million tranche from the IMF, is currently under a SBA with the lender and has pledged to achieve macroeconomic stability and fiscal targets under the programme.

The sources said that Pakistan has also agreed with the IMF that it will not issue any new preferential tax treatments, exemptions, or amnesties, nor introduce any subsidy or cross-subsidy scheme in the financial year 2023-24 and beyond.

The Finance Division has asked all ministries and divisions to ensure that no proposals violating these commitments are submitted to the competent authorities such as the federal cabinet, its committees, CDWP, ECNEC, etc.

The sources further said that the institutions, autonomous bodies, and organisations under the administrative control of the ministries and divisions have also been informed of these commitments to comply with them.

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