Miftah says deal with IMF will conclude successfully despite resistance from Punjab, KP

KARACHI – Finance Minister Miftah Ismail slammed the Khyber Pakhtunkhwa administration as Pakistan’s deal with the IMF come ‘under suspicion’ after Punjab and KP announced to backtrack for generating a revenue surplus during the current fiscal year.

As the cash-strapped country was about to get the much-sought payment from IMF, the Khyber Pakhtunkhwa government refused to implement the IMF loan precondition for the surplus budget, citing non-payment of arrears by Sharif led government.

Soon after the PTI-backed government showed resistance, Pakistan’s Finance chief rapped Khyber Pakhtunkhwa's Finance Minister Taimur Khan Jhagra for ‘jeopardising the IMF programme’, calling it a ‘conspiracy against Pakistan’.

Addressing a hurriedly called presser, Miftah said PTI leaders put Pakistan at stake when it is already reeling from the devastations caused by rains and floods.

He said the deal with the global lender to revive its $6 billion loan program would be materialised, despite the withdrawal of key conditions of provincial surplus by the KP.

In a letter, KP Finance Minister said the provincial administration find it difficult to run a provincial surplus this year in the wake by massive floods, however, Miftah rapped him. Mr jhagra denied approaching IMF over the surplus issue while speaking with a publication.

PTI leader also shared a tweet, saying the federal government committed to resolving major financial issues in the last meeting held on July 6, 2021.

“In return, as committed, I obtained the authorisation of the Chief Minister, for the province of Khyber Pakhtunkhwa to sign on to the MoU and did so within 24 hours. The KP government did this in the greater national interest. However, in contrast to this, in the intervening period of almost two months, we have been unable to get time to meet either with the minister or the secretary, even once, despite repeated requests,” Jhagra wrote.

We have a flood situation on hand, which must take precedence over all else.
But interesting that Miftah Ismail called, and we finally have time on Monday to resolve our issues, as he said in his late night presser. Sad that in their Pakistan, you have to shout to be heard. https://t.co/It7cIVaHVF

— Taimur Khan Jhagra (@Jhagra) August 26, 2022

Last month, Pakistan agreed with the IMF to present a memorandum of understanding (MoU), signed by provincial governments, to jointly provide around Rs750 billion ($339 million) cash surplus to the center.

Islamabad requested an exemption from some targets set by the US-based lender and the executive board will also consider it in the upcoming meeting.

Earlier this month, Finance Minister revealed that Pakistan sent back the signed letter of intent to the International Monetary Fund. A senior official of IMF also revealed that Pakistan completed all prerequisites for the revival of the Extended Fund Facility programme.

Pakistan completes last prior action for release of bailout funds: IMF