Saturday, August 13, 2022

There is no truth in the news of postponement of IMF loan agreement: Muftah Ismail

Federal Finance Minister Muftah Ismail has denied reports that a loan agreement with the International Monetary Fund (IMF) has been postponed, saying there is no truth in such reports.

Finance Minister Muftah Ismail clarified in a report published on the social networking site Twitter on the website of Global Village Space, which claimed that the IM The F program has been postponed.

The report also claims that the IMF wants to review the rules of the National Accountability Bureau (NAB) while the government is ready to implement financial measures other than the laws related to the NAB. Has been declared untrue and wrong.

Muftah Ismail explained on Twitter that he was reading all the tweets and news about the postponement of the IMF program due to an anti-corruption law, but there was no truth in it and the agreement was on track.

It should be noted that the IMF had in June 2019 approved a three-year 6 6 billion loan for Pakistan’s economic project, which was aimed at improving the country’s economy and improving sustainable living standards.

The Finance Minister had announced on June 28 that Pakistan had received the Memorandum of Economic and Fiscal Policies (MEFP) for lending by the IMF for the Seventh and Eighth Joint Reviews.

The measures presented under the MEFP include the approval of the federal budget in accordance with the agreement reached with the IMF, which was presented in the National Assembly on June 24, under which a memorandum of understanding was signed with the provincial governments. This includes the submission of a Memorandum of Understanding (MoU), according to which the provincial governments will jointly provide a cash surplus of about Rs. 750 billion to the federation.

The MEFP budget is based on measures, announced by Muftah Ismail in his concluding speech in the National Assembly last week on the revised budget, which included a financial adjustment of Rs. 17.16 trillion (2.2% of GDP). The tax, which will be levied mostly through 10 taxes, includes 10 per cent super tax on 13 industries and personal income tax on income above Rs 50,000 per month.

This is the largest financial adjustment in a single year to help convert a deficit of Rs 1.6 trillion in capital and expenditure including interest payments into a surplus of Rs 152 billion in the next financial year during the current financial year. Will

This includes introducing a fixed tax system for sectors such as retailers, traders, jewelers, builders, hotels, automobiles and property dealers.

The finance ministry had estimated a provincial surplus of Rs 800 billion (about one per cent of GDP) in the budget to control the overall budget deficit at 4.9 per cent of GDP, but three provinces, Sindh, Balochistan and Khyber Pakhtunkhwa, ran deficits. K did not announce the budget or surplus, the move by the provinces also eliminated the surplus of about Rs 125 billion announced by Punjab, which was much less than its share.

Therefore, the federal government must now share a MoU signed by the provinces with the IMF and pass the Finance Bill approved by Parliament as a precautionary measure, to ensure that The budget numbers presented by the government in the financial framework will be complied with.

The two sides will then jointly review the MEFP over the next two days, which will be formally signed by the Minister of Finance and the Governor of the SBP. Present to members.

Officials say about ً 918 million, or کروڑ 687 million, two installments of Special Drawing Rights, or (SDRs), will be available to Pakistan simultaneously in the last week of July and the first week of August.

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