This is apropos “IMF needs to softens its stance” carried by the newspaper in its Letters to Editor columns a week ago.
The writer, Asad Rizvi, who is widely known as an astute commentator on the issues of economics and finance, had argued, among other things, that IMF Managing Director, Kristalina Georgieva, rightly said that subsidies assist the richer people.
The poor should gain from them. The writer also said, “We Pakistanis hold her in the highest regard. We believe she meant what she said.... Since then, Pakistan has been expecting relief efforts and assistance with the hope of a successful outcome instead of procrastination.
The outcome is zero because nothing has happened thus far. The 9th review has not even been completed yet.” That the writer’s concern or anguish was legitimate is a fact.
What is important to note at this point in time is prime minister Shehbaz Sharif’s meeting with the IMF MD in which he made a fervent appeal for the release of stalled IMF tranche, assuring her that his government would do even more in order to satisfy the Fund.
Soon after his meeting with the IMF MD, the government of Pakistan revisited the budget for fiscal year 2023-24, announcing during an ongoing debate on the budget in the National Assembly a host of new steps, including certain taxation measures, through amendments to the Finance Bill 2023.
The revised budget has received the assent or approval of National Assembly (Finance Bill, as per constitution, does not require its approval by Senate) yesterday.
The stalled IMF tranche, in my view, is now very much in sight. Needless to say, the criticality of the IMF support for a beleaguered economy like Pakistan’s cannot be over-emphasized. The prime minister in particular seems to have worked harder insofar as his efforts aimed at successfully persuading the IMF leadership are concerned.
Meharunnisa Shaukat (Karachi)
Copyright Business Recorder, 2023
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