IMF not fair to Pakistan: The International Monetary Fund (IMF), according to Pakistan’s Foreign Minister Bilawal Bhutto Zardari, is not treating Pakistan fairly and the nation is experiencing “a perfect storm” of issues.
Cash-strapped Pakistan must act quickly to implement the necessary steps to negotiate a deal with the Fund. The conclusion of the ninth review of a $7 billion loan programme, which has been postponed since late last year, must be agreed upon with the IMF in order to release the $1.2 billion that will be disbursed as well as inflows from friendly nations.
The lender designs its requirements to ensure that Pakistan reduces its fiscal deficit before presenting its annual budget in June.
Pakistan has already taken the majority of the other earlier steps, such as increasing the cost of fuel and energy, ending subsidies in the export and power industries, and raising extra money through new taxes in a supplemental budget.
Finally, the IMF has demanded that Pakistan assures to completely cover the balance of payments deficit throughout the remainder of an IMF program.
The effects of the disastrous flooding last year, an economic crisis, and terrorism that was “once again rearing its ugly head” were all mentioned by Bilawal in a lengthy interview with the Associated Press on Friday.
The minister criticised the IMF harshly
The PPP, according to Bilawal, is in favour of increasing revenue collection and thinks that the wealthy should pay more, but he also noted that Pakistan has failed to implement structural tax reform “over the last 23 IMF programmes that we have been a part of.”
Is it the time to criticise our tax laws and tax collection practises while we are dealing with a climate catastrophe of this magnitude? Bilawal enquired.
In addition to dealing with 100,000 new refugees as a result of the West’s departure from Afghanistan and “a constant escalation of terrorist operations within our country,” he claimed that the IMF was not being fair to Pakistan.
He added that the IMF was prolonging negotiations at a time when the nation urgently needed funding to assist the “poorest of the poor”.
And they’re being informed that the IMF program won’t end until their tax reform is finished.
He claimed that despite the Covid-19 pandemic, the Taliban’s occupation of Afghanistan, inflation, and supply chain interruptions, Pakistan managed to survive.
Then, he said, the nation was devastated by last year’s floods, which he described as the “largest, most horrific climate calamity that we’ve ever experienced.”
China-Pakistan relations
He added that Pakistan and China had a “very good economic relationship” that was “also under the spotlight as a result of geopolitical circumstances”.
He said that in view of the floods, the government was “very thankful” to China for announcing a $1.3 billion loan earlier this month.
The foreign minister stated, “The government of China has backed Pakistan whether by rolling over our debt or by providing economic assistance in one way or another. “For the moment, I have no worries regarding this matter. We require assistance and support from all sources.
He said that the administration was “looking to collaborate with anyone, including Russia” to meet the nation’s energy demands and relieve the burden on individuals who had to pay for expensive imported petroleum.
He continued by saying that he thought there was now room for Russian imports inside the US price cap.
Afghanistan
We are on a healthy trajectory, Bilawal stated in reference to Pakistan and US relations.
He cited discussions on trade, technology, health, and the environment. Officials from Pakistan also recently convened to discuss counterterrorism, he noted.
Bilawal allegedly stated that Pakistan’s “claimed influence over the Taliban has always been overblown,” according to the publication.
Nonetheless, he claimed that Pakistan had consistently emphasised the need for dialogue with the Taliban regarding terrorism and other matters, particularly the rights of women to employment and education.
Pakistan, he said, would want to see the Taliban take action against all terrorist organizations, but there are concerns about their ability to do so.
In spite of the situation on the ground, Bilawal advised the West to cooperate with the Taliban. He claimed that the Taliban wouldn’t have “room” to carry out political decisions in the absence of a functioning economy.