Pakistan IMF loan: Imran party-ruled province leans on IMF rider – Times of India – India Times English News

Islamabad: Just two days before an important meeting of International Monetary FundExecutive Board of PakistanThe federal government of the U.S. and the Khyber Pakhtunkhwa (KP) administration withdrew a commitment to revive $6 billion (Pak Rs 1,32,000 crore) with the global body after the North-Western Province’s finance minister wrote to the Center attacked each other. Debt for the country facing cash crunch
Finance Minister Miftah Ismail at the Center had reprimanded the Finance Minister of KP on Friday. Taimur Khan Jhagra To “threate” the IMF program in the country.
Miftah is the finance minister under the Prime Minister-led Pakistan Muslim League government. Shahbaz SharifWhile the PM was deposed Imran KhanThe Pakistan Tehreek-e-Insaf (PTI) is in power in Khyber Pakhtunkhwa.
In the press late on Friday, Mifta accused PTI leaders of “putting the future of the country at stake” when it grapples with flash floods that have killed nearly 1,000 people and affected more than 33 million people. .
The IMF released a $1.7 billion (Pakistani Rs 37,400 crore) tranche – part of a $6 billion bailout package for Pakistan – earlier this year over concerns about compliance with Islamabad’s earlier deal for a credit line was given.
In its recent letter to the Centre, the KP government refused to implement a key IMF loan precondition for the surplus budget, claiming that the provincial administration may find it difficult to run the surplus this year in view of the outbreak of floods. Is.
A “provincial surplus” is the amount that provinces do not spend from money transferred to them by the federal government.
KP’s finance minister Jhagra had also indicated to forward his letter to the IMF. “Running a surplus will be next to impossible if the federal government does not address certain issues, such as budget allocation for former tribal districts, which were merged into the KP in 2018, providing the province with pure water according to agreed terms and conditions. Monthly transfer of profits. Shares to other sectors,” the letter said.
Miftah sent the letter an attempt to quash PTI’s attempt to scrap the deal with the IMF. He claimed that the letter complicated matters for the government as the IMF was expected to take up the issue with Islamabad in its upcoming meeting of its executive board on August 29, according to the IMF.
Responding to Miftah’s statement, former finance minister and senior PTI leader Asad Umar accused the Sharif-led coalition government of “trying to suppress the voice of KP’s finance minister. “Taimur is demanding the right of Jhagra province. The coalition government is trying to put the blame for its failure on the finance minister of KP,” Omar said.
The IMF had signed a “staff-level” agreement with Islamabad on 13 July, agreeing to release the necessary funds immediately. However, the agreement is awaiting approval from the IMF’s executive board, which is scheduled to meet on Monday.