Sunday, June 26, 2022

IMF says previous Pakistani govt violated agreement by giving subsidy

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DOHA: The International Monetary Fund (IMF) mission chief has said the previous Pakistani government violated the mutual agreement by giving subsidies on fuel, ARY News reported. 

The seventh review talks with Pakistan’s IMF mission were held in Doha. Finance Minister Miftah Ismail led the Pakistani delegation. The talks reviewed the financial situation for the fiscal year 2022 and the measures proposed for the new fiscal year 2023.

The IMF called for the withdrawal of subsidies on fuel and electricity, and expressed concern over the situation in the fiscal and current account deficits. The IMF also pointed out reforms in the current account and fiscal deficit.

IMF Mission Chief Nathan Porter said that the subsidy was given by the previous government in violation of the agreement.

Read more: IMF $3 BILLION LOAN SUBJECT TO REMOVAL OF FUEL SUBSIDIES

It should be noted that the PML-N government has failed to take program in negotiations with the IMF. The International Monetary Fund has made the instalment conditional on increasing the prices of electricity, petrol and diesel, on which the PML-N-led federal government has become hesitant.

However, the International Monetary Fund and Pakistan have agreed to continue talks, with Foreign Minister Bilawal Bhutto Zardari calling the IMF’s bailout package outdated and stressing the need for a new program.

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