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Finance Minister Muhammad Aurangzeb has admitted that the government is facing setbacks in implementing the International Monetary Fund’s (IMF) $7 billion programme. Despite these challenges, the minister reaffirmed the government’s commitment to meeting the programme’s objectives ¹.
The IMF programme, approved on September 25, 2024, aims to support Pakistan’s economic reforms and stability. However, the government has struggled to meet several IMF conditions, including targets related to debt maturity, tax collection, and asset disclosure.
*Key Challenges:*
– _Tax Collection Shortfalls_: The Federal Board of Revenue (FBR) reported a shortfall of Rs341 billion against its target, with smuggling being a major factor.
– _Asset Disclosure_: The government has yet to amend the Civil Servants Act to ensure public access to asset declarations of high-level public officials.
– _Debt Maturity_: The finance ministry missed a target to increase the weighted average time-to-maturity for local currency debt.
*Opposition Concerns:*
– Opposition leader Omar Ayub Khan questioned the government’s transparency regarding the Special Investment Facilitation Council (SIFC) and foreign investment.
– Khan also raised concerns over the government’s lack of a clear plan to address the expanding tax shortfall.
The IMF has set deadlines for the government to address these challenges, including a January 2025 deadline for discontinuing gas supplies to industries. The government must now work to address these challenges and meet the IMF’s conditions to ensure the success of the programme.
