The Government of Pakistan has started a new effort to persuade the International Monetary Fund (IMF). It has decided to implement a policy of being economy in the country. A committee of 10 members has been formed to implement this policy.
The committee has been entrusted with the responsibility to implement all possible measures to reduce fiscal expenditure. The conditions imposed by the IMF for giving the next installment of the loan to Pakistan also include reducing the fiscal deficit.
So far no such positive signal has been received from the IMF, which will give hope to the Pakistan government to get a loan from it soon, but there is no other way other than the IMF, through which Pakistan can get foreign exchange. Experts are of the opinion that if Pakistan does not get the loan from the IMF soon, then it may face the possibility of defaulting (not repaying) its debt in the next few months.
The Finance Minister will chair the Kifayat Committee which has been formed by the Pakistan Democratic Movement (PDM) government led by Shahbaz Sharif. Apart from this, the Minister of Planning, Minister of Communications, Minister of Commerce, Minister of Maritime Affairs and Minister of State for Finance have also been kept in this. Secretaries of all these ministries have also been included in this.
According to observers, the formation of this high-level committee will send a message to the IMF that the Pakistan government is serious about reducing spending. But the general opinion is that unless concrete progress is made in this regard, it will not be possible to impress the IMF with only positive messages.
Last month, the PDM government had announced several measures to cut expenditure. It also includes control over power consumption. Apart from this, foreign travel of government officials has been banned. Government departments have been ordered to cut fuel consumption by 40 percent.
According to a report published in the newspaper Dawn, the implementation of all these measures is being overseen by Prime Minister Shahbaz Sharif himself, but according to a recent report, the Finance Ministry is at the conclusion that it will not be possible to meet the conditions of the IMF with the measures announced so far. .
There is therefore a need for more stringent measures for judicious use of government funds and for reducing the fiscal deficit. The Finance Ministry presented its assessment on July 7. Under this, the Finance Ministry has ordered the government departments to ban the purchase of all types of new vehicles. There has been a ban on appointment to new posts within all the ministries.
Observers say that the campaign to reduce expenditure will have an impact on development works. Apart from this, the government can also take some such steps, whose burden falls on the general public. In the last one and a half months, it has increased the price of petrol by more than 100 rupees per liter. According to experts, even after these steps, the IMF will be satisfied, it is not certain. A special concern of the IMF is also the increasing political instability in Pakistan. The Sharif government has no solution for this.
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source https://spotlight7.com/world/pakistan-government-will-now-gear-up-more-to-persuade-imf/
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