Centre accepts IMF condition without consulting provinces

ISLAMABAD: The federal government has accepted a condition of the International Monetary Fund (IMF) without consulting the provinces, ARY News reported on Friday.

According to details, the coalition government has accepted the IMF condition of Rs800 billion (about 1 percent of GDP) provincial surplus in the budget. The agreement – based on IMF terms – has also been shared with all four provinces.

Meanwhile, Khyber-Pakhtunkhwa (KP) has raised objections over the Memorandum of Understanding (MoU) between Pakistan and the global lender. In this regard, KP Finance Minister Taimur Saleem Jhagra has written a letter to Federal Minister for Finance Miftah Ismail.

In the letter, KP Finance Minister regretted that the government did not consult the provinces before accepting IMF condition.

“Before signing the agreement, the Centre should solve the KP’s financial problems,” Taimur Saleem Jhagra said, adding that the government should ensure health cards and funds for the people of former FATA.

The letter further stated that the government should ensure funds for the tribal districts in the Budget 2022-23.

“KP was receiving Rs3 billion monthly from the National Health Programme,” he said, adding that the government should immediately restore the NFC award as the province was receiving shares on basis of 1998 census.

The letter further stated, “The province is not being provided funds for the post-integration population of the tribal districts,” adding that it will only be possible to accept the IMF condition if the provincial demands are met.

Talking exclusively to ARY News, Finance Minister Taimur Saleem Jhagra said that Sindh and Balochistan presented deficit budgets of Rs35 billion Rs100 billion respectively. “Budget matters should not be politicised,” he added.