ISLAMABAD – The International Monetary Fund (IMF) has reportedlyconditioned to reduce the shares of provinces from the federal divisiblepool under National Finance Commission (NFC) Award.

The said condition has irked all the four provincial governments, whopledged to resist the move forcefully.

Pakistan on Thursday formally approached the IMF for a bailout package toshore up its depleting foreign exchange reserves in a bid to stave off apossible balance of payment crisis in the face of widening trade deficitand swelling import bill.

On Thursday, the IMF’s managing director Christine Lagarde in a statementsaid that a decision on Pakistan request will be taken after more talksnext week and a Fund team will travel to Islamabad for the purpose۔

The Fund during its recent annual assessment of Pakistan economy hasfloated the proposal to cut the shares of provinces in the NFC Award. Afterthe government decided to opt for IMF programme, many fears the governmentmay implement its proposal.