IMF Raises Alarms as Pakistan Misses Circular Debt and Primary Balance Targets
In a concerning development, Pakistan has reportedly fallen short of the targets set by the International Monetary Fund (IMF) regarding the circular debt in the power sector and achieving a primary balance surplus. The IMF mission has expressed worry over these discrepancies, according to inside sources.
Karobar
The primary balance surplus, which was expected to reach Rs. 417 billion, stalled at Rs. 400 billion, indicating a notable deviation from the set goal. This shortfall raises questions about Pakistan's ability to meet the financial benchmarks agreed upon with the IMF.
The IMF mission is scheduled to conduct a thorough review of the circular debt target during the next two days of policy-level talks. Caretaker Finance Minister Dr. Shamshad Akhtar, in response to these concerns, assured the IMF that Pakistan is committed to controlling the budget deficit. She proposed achieving this by implementing expenditure cuts without imposing additional tax burdens on the public.
Dr. Akhtar underscored the importance of adopting an austerity policy to address these challenges and expressed satisfaction with the IMF's response to Pakistan's initiatives, including measures related to development spending and the Benazir Income Support Programme (BISP).
This development comes at a critical juncture for Pakistan's economy, as meeting IMF targets is crucial for securing continued financial support and maintaining economic stability.
