Islamabad, Dec 3: Finance Minister Muhammad Aurangzeb admitted on Monday that Pakistan is facing “hiccups” in implementing the $7 billion International Monetary Fund (IMF) programme but expressed the government’s commitment to fulfilling its obligations. The statement came during a briefing to the National Assembly Standing Committee on Finance, highlighting key challenges in meeting IMF conditions.
The finance ministry disclosed multiple setbacks, including the failure to meet the target for debt maturity and delays in spending on health and education. The Federal Board of Revenue (FBR) also fell short of its three-month revenue target by Rs89 billion, exacerbating the tax collection shortfall to Rs341 billion by November.
In response to IMF demands, the government has faced scrutiny over asset disclosure requirements, particularly regarding military and judiciary officials. Opposition leader Omar Ayub Khan urged the inclusion of these entities in asset declaration reforms, which are a part of IMF’s transparency conditions.
Syed Naveed Qamar, chair of the committee, noted that the government had requested an in-camera meeting to discuss sensitive matters, emphasizing the complexity of navigating coalition politics while adhering to IMF directives.
Key structural benchmarks, such as discontinuing gas supplies to industries by January 2025 and amending the Civil Servants Act to improve transparency, also remain contentious. The finance ministry confirmed that negotiations with the IMF on these issues are ongoing, with limited success so far.
Meanwhile, the Inland Revenue Service Officers’ Association (IRSOA) criticized the FBR’s policy framework, citing widespread dissatisfaction among officers and alleging mismanagement in the implementation of the “Transformation Plan.”
With the IMF raising concerns over missed targets, the government faces mounting pressure to bridge the revenue shortfall, address smuggling issues, and implement tax reforms. As the programme moves forward, the challenges underline the urgency for strategic measures to ensure compliance and economic stability.
