Budget 2023-24: IMF sees glass half empty
Business
World's top lender had already set three conditions to create any chance of disbursing the loan
ISLAMABAD (Web Desk) – With the International Monetary Fund (IMF) still pressing the government hard to increase the tax and non-tax revenues collection, it has become a cliché to say that the world’s top lender is still unhappy with the Pakistan for not fully complying with its conditions.
So the government has to raise the petroleum levy in the 2023-24 budget for enhancing the collection to Rs869 billion in the next fiscal year against the revised estimate of Rs542bn for 2022-23, as the ministry informed the Senate Standing Committee on Finance a day earlier.
It is consistent with what Esther Perez Ruiz, the IMF’s resident representative, had last week said as she stressed that Pakistan had to satisfy the IMF on three counts before the top lender’s board would review whether to release at least some of the $2.5 billion still to be disbursed under a lending programme set to expire by June-end.
“To pave the way for a final review under the current EFF, it is essential to restore the proper functioning of the FX market, pass a FY24 Budget consistent with programme objectives, and secure firm and credible financing commitments to close the $6 billion gap ahead of the Board,” she added.
But it isn’t a surprise as experts had already warned that the IMF won’t change its stance after the government unveiled the 2023-24 budget and was going to continue pressing Pakistan hard to meet all of its conditions, thus making it impossible to finalise the deal between the two sides.
Read more: IMF to persist with 'do more' as Pakistan looks beyond budget: experts
The reports about ongoing talks between the two sides were confirmed by State Minister for Finance Dr Ayesha Ghaus Pasha told media persons on Tuesday that they were in touch with the IMF and the international lender had held meetings with the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP) and the Finance Division.
Read more: Dar updates Chinese diplomat on IMF affairs
