[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]According to former Finance Minister Miftah Ismail, Pakistan has repeatedly violated its agreement with the International Monetary Fund (IMF), resulting in a trust deficit between Pakistan and the global lender.
In a recent media interview, the former minister stated that Pakistan violated the IMF agreement twice during the previous administration. He claimed that after the coalition government took power last year, the government began subsidising petroleum products with billions of rupees.
He stated that the government had assured the IMF that the petroleum subsidy would be removed, and that the IMF had approved a loan tranche for Pakistan. He claimed that he was later fired and replaced as finance minister by Ishaq Dar, who violated the IMF agreement.
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According to Ismail, Pakistan and the IMF now have a trust deficit because the country has violated its agreement with the global lender three times in recent years.
He stated that the government’s recent announcement to cross-subsidize petrol has once again alarmed the IMF. He stated that the IMF now expects Pakistan to secure external financing from friendly countries before moving forward with the staff-level agreement.
The former finance minister also commented on the government’s proposed petrol subsidy scheme and said that it is unlikely that the scheme will go through.[/vc_column_text][/vc_column][/vc_row]
