Federal Minister for Finance and Revenue Senator Muhammad Ishaq Dar ruled out the financial management instructions from the International Monetary Fund (IMF).
In an interview with the private news channel ‘Geo News’ “Aaj Shahzeb Khanzada Kay Saath,” Dar stated that he would not ask the IMF for loans to Pakistan; they can’t dictate; if the money doesn’t come in, we’ll manage.”
The finance minister, who started the office in September, stated that “he doesn’t care” if the IMF does not supply funding and that the Fund may wait for Pakistan to manage its economy, as the government could not burden the people by increasing the prices of petroleum items.
The Finance Minister stated that all agreements with the international lender were in order, and the administration has been meeting weekly with the International Monetary Fund for the ninth review.
According to the daily “The News”, Pakistan and the IMF continue negotiating the ninth review. Still, neither party has yet reached a comprehensive agreement on a revised macroeconomic framework for the current fiscal year.
The protracted nature of the negotiations may postpone the conclusion of the ninth review and release of the $1 billion tranche until 2023.
Pakistan and the international lender are both tight-lipped, and no one is ready to speak on the record. However, discussions in the background indicate that the talks were in limbo due to disagreements over the revised macroeconomic and fiscal framework discussed with the IMF.
The finance minister stated that Pakistan has met all of the Fund’s requirements but that the lender is “behaving unusually” because both parties have yet to reach an agreement.
“However, I have never and will never accept orders from organizations such as the IMF. Whether fortunate or unfortunate, the IMF has been designated as the financial doctor of nations, “He mourned.
The minister’s declaration comes at a time when Pakistan’s foreign reserves are in a less-than-ideal shape since they can only fund imports for the next 1,6 months — and following the floods, imports are projected to rise.
