ISLAMABAD – Foreign Minister Bilawal Bhutto Zardari has stated that the International Monetary Fund (IMF) is not being fair to Pakistan, as the country is facing serious crises.
In an interview with the Associated Press on Friday, Bilawal Bhutto said that Pakistan was facing an economic crisis, the consequences of last year’s catastrophic flooding and terrorism which was “once again rearing its ugly head”.
The foreign minister criticised the IMF for delaying the loan programme. He said the PPP supported expanding revenue collection and believed those who were well off should pay more. He said that Pakistan had been unable to achieve structural tax reform.
The IMF is not being fair to Pakistan, which is also dealing with 100,000 new refugees following the West’s withdrawal from Afghanistan.
He further said that the IMF was stretching out talks at a time when the country needed money to help the “poorest of the poor”.
He further said that Pakistan had a “very healthy economic relationship” with China that was “also in the spotlight as a result of geopolitical events”.
Cash-strapped Pakistan is in a race against time to implement measures to reach an agreement with the Fund. The agreement with the IMF on the completion of the ninth review of a $7 billion loan programme — which has been delayed since late last year — would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.
The prerequisites by the lender are aimed at ensuring Pakistan shrinks its fiscal deficit ahead of its annual budget around June.
As a last step, the international lender has required Pakistan to guarantee that its balance of payments deficit is fully financed for the remaining period of an IMF programme.
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