The budget for the next fiscal year will do little to allay the International Monetary Fund’s concerns and makes it more difficult for Pakistan to complete the pending ninth and 10th reviews of the current bailout package, experts say.
This view, shared by a Washington-based economist Uzair Younus, is backed by many in the US capital about how the budget impacts Pakistan’s chances of receiving the remaining two tranches from the IMF and of getting a new assistance package.
Even those in the IMF and the World Bank share these sentiments, although no official is willing to offer on-the-record comments because of the sensitivity of the issue.
“Economic stability is linked to political stability,” said an official when asked if the 2023-24 budget allays IMF’s concerns about the Pakistani economy.
“Forget about the two tranches. Focus on long-term reforms that can get you future (IMF) programmes,” said another. “They need to stop experimenting and [start working to] bring stability.”
The sources who spoke to republic policy explained that the current government completes its tenure in about 60 days and then there will be a new, interim government for 90 days. If a financial institution, such as the IMF, enters into a programme with Pakistan, it will require at least a year’s guarantee to implement the reforms the two sides agree on.
