IMF Asks Pakistan To Explain Funding For $ 1.5 Billion Subsidy Package Announced By PM Imran Khan

The IMF has started a seventh review of the rescue package worth $6 billion agreed with Pakistan in 2019, and Tarin said that he will have the final meeting with the lender on Tuesday. 

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New Delhi: The International Monetary Fund has asked Pakistan to explain how the country would fund the $1.5 billion subsidy package announced by Prime Minister Imran Khan, said Finance Minister Shaukat Tarin on Sunday, reported Reuters. 

Responding on the same, Tarin said, “There are no issues. We have given them details as to where funds would come from.” The IMF wanted details of the resources to fund the subsidy in fuel and electricity, which Pakistan has frozen for the next four months until the new budget, the Finance Minister added. 

The IMF has started a seventh review of the rescue package worth $6 billion agreed with Pakistan in 2019, and Tarin said that he will have the final meeting with the lender on Tuesday. 

The IMF has informed the country that it will need to see the agreements of dividends of the State Owned Enterprises (SEOs) as well as details of the spare funds that the Central Government will get from provinces. 

To this, Train said, “We have done our homework.” 

Some of the subsidy money would also come from above-target revenues Pakistan was getting this fiscal year, he had said previously, stated above mentioned Reuters report. 

Train, earlier this month, had said that revenue would hit 6.1 trillion Pakistani Rupees ($34.2 billion), as against target of 5.8 trillion rupees. 

Despite a steep rise in global oil market, Pakistan Prime Minister Imran Khan had announced a cut in petrol and electricity prices as he face a no confidence motion to oust his from the office by opposition parties. 

Pakistan had to undertake fiscal tightening measures to pass its last IMF review, which was delayed by months as the government struggled to complete prior action required by the lender to release $1 billion in February.