ISLAMABAD – Ahead formulation of new budget, the International Monitory Fund (IMF) has issued the thrid installment of loan worth $ 550 million that might be an indication that in new fiscal year the body would have more say in the country’s financial policies.
The State Bank of Pakistan (SBP) officially announced the receiving of $ 550 million on Thursday.
The Pakistan Muslim League-Nawaz (PML-N)’s federal government had already been surpassing the legislative institute to form financial policies. On March 25, PakistanTribe reported that on government’s advise President Mamnoon Hussain had signed the ordinance which secretly allowed government to collect 17 percent tax on natural gas being supplied to CNG stations.
Though the foreign exchange reserved of the country has increased to $ 9.6 billion after receiving loan fro IMF but federal fianace minister seemed to be least concern about the poor classes. It was reported by PakistanTribe on Thursday that Dar would not be giving a single penny increment for government employees in next fiscal year. However, he mentioned that government had already bestowed the tax relief of Rs 310.8 billion for elite business class of the country.
Not to forget that Pakistan had received $ 1.5 billion controversial ‘gift’ from brethren Saudi Arabia. When opposition parties in National Assembly started raising eyebrows on this mysterious grant, Dar gave them a shut up call. But even with $ 1.5 billion Saudi gift, the burden of external debts could not be lessen.
During the week ending on March 21, the decrease in the reserves was due to external debt servicing of $248m, inclusive of $57m repayment to IMF, and other official flows.