IMF asks Pakistan to drop RS1.1 trillion provincial projects from federal budget

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The International Monetary Fund (IMF) has asked Pakistan to remove provincial mandated development projects from its federal development budget and calls for compliance with constitutional liability defined under the 18th amendment.

The federal government is expected to exclude 168 provincial development schemes from the upcoming budget, sources of Express Pakinomist told.

The total cost of these projects amounts to RS1,100 billion, of which RS300 billion has already been used.

The IMF has instructed no further federal funding to these projects, considered the responsibility of provincial governments. Completion of the remaining work would require an estimated RS800 billion, which the IMF says must now be financed through provincial development budgets.

Demand reflects the IMF’s broader push for fiscal discipline and clarity in federal province expenses as Pakistan continues to negotiate financial reforms under his loan program.

Pakistan’s Finance Minister Muhammad Aurangzeb traveled to New York earlier this week prior to central engagements in Washington, where he is expected to raise the issue of re -planning guaranteed debt with his Chinese colleague. The discussion is set to take place on the sidelines of the International Monetary Funds (IMF) spring meetings.

According to government sources, Aurangzeb is also scheduled to meet with the IMF Managing Director and a senior official from the US Ministry of Finance during the visit.

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