IMF concerned over fiscal indiscipline in state-owned entities

ISLAMABAD: The International Monetary Fund (IMF) has expressed concern over fiscal indiscipline and mismanagement in government departments, citing sources ARY News reported on Saturday.

According to sources, the global lender has expressed dissatisfaction over persistent deficit in state owned entities.

“There is lack of improvement in electricity and gas transmission losses,” IMF pointed out. “Pakistan continuously bearing losses in the energy sector,” IMF delegation observed. “It insisted for privatization of the state entities bearing losses,” sources said.

The monetary fund has also demanded restricting the state interference in the economy by privatization as well as it is insisting on regular audit in government departments, according to sources.

“IMF is also demanding eliminating corrupt practices and retapes in government entities and business friendly and convenient tax collection mechanism,” sources said.

The lending institution has demanded an early privatization of Balloki and Haveli Bahadur Shah LNG power plants, privatization of government banks running in losses, House Building Finance Corporation and other state-owned entities, sources said.

IMF delegation has also demanded to scale down monetary losses in the PIA, Steel Mills and other state entities, sources added.

To meet another condition of the International Monetary Fund (IMF), the federal government has made it mandatory for all government officials of grade 17 and above to declare their assets.

A notification to this effect was also issued by the Federal Board of Revenue (FBR).

According to the notification, the government has also asked public servants to submit details of their overseas assets. “All 17 to 22 Grade officers have to provide all information before opening a bank account,” the notification read.

The development came after the International Monetary Fund (IMF) had demanded Pakistan to amend laws for assets declaration of public servants.