A letter sent by the Khyber Pakhtunkhwa Finance Minister to the Federal Finance Minister Miftah Ismail has created chaos as the former stated his province’s incapacity to produce budget surplus. The coalition government on Friday took exception to PTI’s “attempts to jeopardize the IMF loan programme” just days before the IMF board meeting.
All eyes are on the revival of the IMF loan programme to cope with depleting reserves, depreciating Pakistani Rupee against the greenback and skyrocketing inflation. However, such chaos which brings the revival of programme at stake may create negative market sentiments.
Federal Minister for Finance expressed his hope on Friday that the country’s deal with the global lender would be materialized, despite the withdrawal of key condition of provincial surplus by the Khyber Pakhtunkhwa government.
#Pakistan’s finance minister Miftah Ismail on Friday said the country’s deal with the #IMF to revive its 6 billion #dollar loan program would be materialized, despite the withdrawal of key condition of provincial surplus by the Khyber Pakhtunkhwa government.#Economy pic.twitter.com/rxUzaJ5ISo
— Pakistan Stocks 📊📈🇵🇰 (@Stockkse100) August 27, 2022
Pakistan is among the world’s most bailed-out countries. It is currently participating in its 23rd loan program with the IMF since the country joined the institution in 1950, just three years after partition from India.
The latest disbursement to be decided on by the IMF board Monday is, in fact, part of a $6 billion loan program agreed upon with Islamabad in 2019. If approved, the money will come after months of delays and tough negotiations as Pakistan backtracked on promised policy reforms.
Asad Umar’s response to Miftah Ismail
Former Minister for Planning and Development Asad Umar also responded to the accusations on PTI to sabotage the revival of the IMF loan programme.
— PTI (@PTIofficial) August 27, 2022
He said, “not only Pakistan, but even Nawaz Sharif also considers him as incompetent.” He added, “the news is circulated within your media that Nawaz Sharif wants you to be dismissed because you have been proven as incompetent, failing to fulfil your fundamental duties.”
He criticized that Miftah Ismail failed to acquire the loan in last 4.5 months and now putting the blame on the shoulders of others.