Deadlock continues between IMF and govt over Fund’s five conditions

Adviser to Prime Minister on Finance Shaukat Tarin has said that the five difficult conditions of the International Monetary Fund (IMF) are hindering the restoration of Pakistan’s aid program. The government has accepted the most important demands, including raising the cost of electricity, but is facing difficult issues like the State Bank’s sovereignty and complete elimination of tax exemption.

No free lunches as Pakistan will have to make efforts to restore the IMF loan program. Pakistan has fulfilled several conditions of IMF, but the fund is showing dissatisfaction. It is becoming difficult for Pakistan to restore the loan program.

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In an informal conversation with the media in Islamabad, the finance advisor said that the deal with the IMF will soon be made.

Tarin said that the IMF has demanded five measures ahead of the deal and we are making efforts to achieve them.

He said that the government had accepted the most important demands, including raising the cost of electricity, but is facing difficult issues like the State Bank’s sovereignty and complete elimination of tax exemption. In this connection, bills have been prepared. The ministry of law is finalizing the draft of the legal bills, the finance adviser added.

Currency rate and monetary policy are the scope of the State Bank, so cannot say anything about the change in the rate of profit in monetary policy.

Earlier, Tarin addressed the corporate philanthropy award ceremony in Islamabad. He said corporate philanthropy increased by 50 per cent. The Pakistan Center for Philanthropy is an authentic NGO.

He said that the move increases the speed of the country’s economic development. It is the government’s responsibility to work for the welfare of masses but due to shortage of funds it is facing difficulties.