Pakistan foreign minister Bilawal Bhutto Zardari said that the International Monetary Fund (IMF) is “not being fair” to Pakistan amid severe economic crisis. Bilawal Bhutto Zardari said that Pakistan was facing an economic crisis following devastating flooding and terrorism which was “once again rearing its ugly head”, in an interview with the Associated Press.
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Criticizing the IMF for delays in the loan deal, Pakistan foreign minister said that he supports expanding revenue collection and believes that those who were well off should pay more but Pakistan had been unable to achieve structural tax reform.
The IMF is “not being fair” to Pakistan as the country is also dealing with 100,000 new refugees following US withdrawal from Afghanistan, he asserted, saying that the IMF was stretching out talks at a time when the country needed money to help the “poorest of the poor”.
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Pakistan had a “very healthy economic relationship” with China that was “also in the spotlight as a result of geopolitical events”, he added.
Cash-strapped Pakistan’s agreement with the IMF has been delayed since late last year as the lender aims to ensure that the country shrinks its fiscal deficit ahead of its annual budget around June. IMF has also asked Pakistan to guarantee that its balance of payments deficit is fully financed for the remaining period of the programme.
“All IMF programme reviews require firm and credible assurance that there is sufficient financing to ensure that the borrowing member’s balance of payments is fully financed over the remainder of the programme”, IMF’s resident representative Esher Perez told Reuters.
Keeping in line with the IMF requirements, Pakistan unveiled a supplementary budget on February 15 which approved a new tax on electricity users, approved the discontinuation of power tariff subsidies to zero-rated industries and hiked petrol and high-speed diesel prices.
