SHAFAQNA PAKISTAN (Shia News Agency)-
The Executive Board of the International Monetary Fund (IMF) completed the sixth review of Pakistan’s economic performance under a 36-month program supported by an Extended Fund Facility (EFF) arrangement. The Board’s decision enables the immediate disbursement of $501.4 million, bringing total disbursements under the arrangement to about $3.5 billion.
Pakistan Finance minister Ishaq Dar has convinced the IMF, at least, that we are pretty much where we should be at the turn of the fiscal year. However, if the economy is so rosy, why has the growth rate turned out a full percentage point lower than the projection? And why have we, once again, had to convince the Fund about our inability to meet the deficit target? Why Pakistan is looking for another trench of loan from IMF? The finance minister has insisted that all quantitative IMF performance criterion have been met by the country, excluding the FBR’s revenue target; and the IMF mission chief has insisted that his task includes the privatisation of public-sector enterprises. There are three major issues of concern: the agreement to make the SBP autonomous, the privatisation of public enterprises and the decision to exclude circular debt from gross national debt. After a set of instructions it is clear that IMF is not the partner but master of Pakistan. Apart from taking loan to IMF Pakistan has also requested $1.5b from the Jeddah based Islamic Development Bank (IDB) in addition to the rollover of a $1b loan asked of good friend China. Also, it’s not just the rupee that is deflating the kitty. And it’s also not that the government takes to unnatural borrowing just around budget time. It has long been addicted to borrowing even in order to run its day to day affairs.
pakistan.shafaqna.com