The International Monetary Fund (IMF) has reportedly presented stringentausterity conditions regarding Pakistan’s development budget. There areconcerns regarding the allocation of funds for new projects in the currentfinancial year, as reported by ARY News.
As a response to the IMF’s proposal on austerity conditions, theauthorities in Pakistan are contemplating the suspension of funds for newdevelopment projects across the country. The IMF’s proposal instructs thePakistani caretaker government to allocate funds to ongoing developmentprojects, particularly those near completion, instead of introducing newdevelopment projects.
In light of these recommendations, the relevant authorities are expected toreevaluate their development project priorities. Additionally, sourcessuggest that the IMF has expressed no objections to providing funds for therehabilitation of districts affected by floods in Pakistan.
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Notably, the IMF had previously urged Pakistan to “immediately raise” gastariffs to address the losses and circular debt in the country’s gassector. The IMF is seeking a 100% increase in gas tariffs and voicedconcerns about the lack of a tariff increase from July 1 during a virtualmeeting with Pakistan’s finance ministry officials. They urged thecaretaker government to promptly approve the gas tariff hike.