Shahbaz Sharif, Prime Minister of Pakistan.
Islamabad: The International Monetary Fund (IMF) is nervous after lending to Pakistan. He is now trying to suffer the danger of drowning his money. In such a situation, the IMF has implemented 11 new conditions before releasing the next installment of its relief program for Pakistan. Along with this, the IMF has warned Indo-Pak tension as a serious risk for the economic program. This information has been received through media reports revealed on Sunday.
According to the report published in the ‘Express Tribune’, the Staff-Level report released by IMF mentions the following conditions-
Budget’s approval from parliament
It is mandatory for the next financial year to pass a federal budget of Rs 17,600 billion from Parliament. Increase in overload on electricity bills will apply more loans repayment fees on consumers. Removing restrictions on import of old cars. The implementation of new Agricultural Income Tax Act by four federal units, including taxpayer identity, returns processing, compliance reform and communication campaign. The deadline to be done by June 2025. Publishing an action plan of operational reforms based on IMF recommendations. The financial sector strategy after 2027 prepared and make it public. Four additional conditions associated with the energy sector, including tariff fixation, distribution improvement and financial transparency.
Tension stressed with India
The IMF report also warned that the current status of Indo-Pak tension, especially in view of recent military activities, Pakistan’s fiscal status, external accounts and economic reform programs may have a direct impact.
According to the report, tension has increased after the counter -attacks carried out by India on 22 April under ‘Operation Sindoor’.
Increased defense budget and its effect
According to the IMF report, Pakistan’s upcoming defense budget is estimated at Rs 2,414 billion – which is 12% more than the previous year. But the government expressed his intention to allocate Rs 2,500 billion (18% increase) earlier this month. This defense spending goes in opposite direction to the fiscal balance goals of the IMF.
A total of 50 conditions apply so far
With the new 11 conditions of the IMF, a total of 50 conditions are now implemented on Pakistan. These conditions reflect not only financial balance, but also intensive intervention towards institutional transparency and governance reform. Pakistan is now not only to fulfill these conditions, but is also a challenge to achieve economic stability by calming regional tension. (Language)
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