The International Monetary Fund (IMF) has approved the release of sixth tranche of $550 million after discussions with Pakistani delegation in Dubai. The installment of the loan is part of $6.6 billion three years Extended Fund Facility approved by the IMF’s executive board in September 2013. The newspaper reports suggest that Jeffery Franks, the outgoing chief of the IMF mission to Pakistan, led the IMF team while the Pakistani delegation was led by Finance Minister Ishaq Dar. State Bank Governor Ashraf Wathra and other senior officials were also present in the meeting part of the government delegation. The Pakistani delegation was told that the IMF would not approve any relaxation in the fiscal deficit despite insistence by Dar.The donor agency was told that the country needs Rs 100 billion to rehabilitate internally displaced people as well as for the national action plan against terrorms.The government circles are boasting of the release of the tranche and regarding it as another major achievement of the democratic government, but fall short of realizing that — in the long run — the loans will have severe repercussions. However, regardless to debate whether loans are good or bad for the economy, one fails to understand why the government delegations always choose Dubai or London for talks despite the fact that there is enough space in the country for important occasions.
Meanwhile, the Federal Board of Revenue has reportedly collected Rs 1,162 billion against the net tax revenues target of Rs 1,195 billion for the period ending in December as the overall target was revised during the previous round of talks with the IMF. There several reasons which contributed to the low tax returns including falling oil prices. However, one thing is clear whether it is the Pakistan People’s Party government or the Pakistan Muslim League-Nawaz government, the burden of so-called circular debt is shifted on the electricity consumers on one pretext or the other. The government knows every trick to satisfy the IMF and keep the people under pressure.
The time has come to establish independent institutions free of political interference to launch ruthless accountability of every wrongdoer in the country. The government is spending millions of dollars on foreign tours to even get loans and no one is in a position to ask them a question.There are several parliament bodies working on important issues, but their recommendations are symbolic and are without any legal binding. There is a need to incorporate their suggestions in the policymaking process.
