ISLAMABAD: More stringent demands have emerged in the ongoing negotiations between the International Monetary Fund (IMF) and the government of Pakistan, the implementation of which is being made mandatory in the upcoming budget. According to sources, the IMF has demanded that the pre-agreed conditions in the federal and all provincial budgets be fully implemented so that economic stability can be achieved.
The IMF has directed the provincial governments to give written guarantees for reducing expenses. Along with this, it has been emphasized to take practical steps to improve the business environment and include these steps in the budget. The fund has made it clear that no subsidy will be given on electricity and gas and a ban should also be imposed on new government appointments.
Sources say that the IMF has also said that the political parties present in the parliament should be taken into confidence on the set economic targets so that these targets can be ensured. In addition, the federation and the provinces have been directed to jointly prevent theft of electricity and gas and take coordinated and practical measures against smuggling.
The IMF has further emphasized that the provinces should include a clear strategy in the budget for collecting taxes on agricultural income and services so that the scope of revenues can be expanded and transparency can be brought to the national economy. At this important stage of the negotiations, the government is facing difficult decisions that will directly affect the preparation of the next budget.
