Finance ministry reaffirms keen interest in talks with IMF deal

Islamabad: The Ministry of Finance reaffirmed its keen interest in negotiating the IMF deal on Friday, showing flexibility regarding the recently presented budget. This response comes after the International Monetary Fund (IMF) expressed reservations about the budget's content.

In a two-page rebuttal addressing the concerns raised by the IMF's Resident Representative for Pakistan, Esther Perez Ruiz, the ministry clarified Pakistan's position. It stated that the pending ninth review, delayed since November of the previous year, was not related to the current budget. The ministry emphasized its commitment to reaching an amicable solution through continued engagement with the IMF.

Regarding the budget debate, the Pakistan Peoples Party (PPP) questioned the intentions of its coalition partner, the PML-N, in presenting what they referred to as an "unrealistic" and "election-oriented" budget. Nafisa Shah, representing the PPP, criticized the government for not taking necessary actions to address the economic challenges faced by the country.

Statement on on-going IMF negotiations. pic.twitter.com/5VmKPZ3ToS

— Ministry of Finance (@FinMinistryPak) June 16, 2023

During the discussion in the National Assembly's Standing Committee on Finance and Revenue, Committee Chairman Qaiser Ahmad Sheikh expressed disappointment at the lack of updates on IMF matters and the failure to address issues related to businesses and banks.

Responding to the PPP's claims, Finance Minister Ishaq Dar asserted that the budget would have been presented in a similar manner, even without the upcoming elections. He acknowledged the delay in reaching an agreement with the IMF but expressed confidence in achieving a 3.5% GDP growth in the next fiscal year.

Minister Dar provided details on the tax proposals, citing a scientific basis for setting the annual tax target of Rs9,200 billion. He highlighted the government's efforts to expand the taxpayer base and combat smuggling, emphasizing the seizure of smuggled sugar worth Rs5 billion.

Additionally, he mentioned ongoing negotiations with China for loans amounting to $1 billion and further discussions with the Bank of China for a loan of $300 million.

Despite the challenges and criticisms, the government remains focused on prioritizing youth, women, the IT sector, and SMEs in its budgetary allocations, aiming to foster economic growth and development in Pakistan.

As discussions and negotiations continue, the government strives to address the concerns raised by various stakeholders and work towards achieving economic stability and prosperity for the country.