Marriyum censures former regime as govt inches closer to IMF deal

Information Minister Marriyum Aurangzeb on Sunday expressed astonishment at those who previously caused damage to the economy now lamenting the sings of the possible restoration of an agreement they had signed themselves with the International Monetary Fund (IMF).

In a statement, the informaton minister highlighted the destructive actions of certain individuals who, on May 9, not only inflicted harm upon the nation by causing fires, attacking both military and private properties, and desecrating memorials dedicated to martyrs, but were now also poised to further jeopardise the economic interests of the country.

“Arsonists, conspirators and enemies of the country have started crying again as they heard the news that the agreement with the IMF is being restored”, she maintained.

Marriyum said that the previous regime signed the IMF agreement on strict terms, violated it, and then suspended the agreement, and then hatched conspiracies against the country and the agreement.

The minister said that questions should be asked to those who were crying over the agreement and they should be asked why they signed the IMF agreement. She said it was ironic that those who were crying over the agreement had signed the IMF agreement themselves.

Read more: NA passes Finance Bill 2023 to secure IMF funding

“Not only did they violate and suspend this agreement, but they conspired to make the country default,” she added.

The minister said that former prime minister Nawaz Sharif during his tenure had stabilised the country’s economy, but “foreign agent” Imran Khan shook the foundations of the economy, forcing the government to seek the support of the global lender.

“Nawaz Sharif is the only leader whose government completed the IMF programme and also put the country on the path of development,” she remarked.

In a pointed remark aimed at former prime minister Imran Khan, she questioned the inconsistency of a person who once adamantly proclaimed a preference for death over seeking IMF assistance, yet ultimately found himself compelled to approach the global lender for support.

She said that the foreign agents who laid economic mines and nearly bankrupted the country and deprived the people of livelihood were today demanding the resignation of Finance Minister Ishaq Dar, who has stabilised the economy.

Read: Govt softens stance to meet IMF terms

Marriyum’s statement came at a time when the National Assembly approved the federal budget for the upcoming fiscal 2023-24 as the country tries to secure the crucial IMF deal in a final effort to clinch a much-delayed rescue package.

Under the Finance Bill 2023-24, which was approved with a majority vote, the tax collection target has increased from Rs9,200 billion to Rs9,415 billion and pension payment increased from Rs761 billion to Rs801 billion.

Moreover, under National Finance Commission (NFC), instead of Rs5,276 billion, Rs5,390 billion will be received.

Rs215 billion new taxes are also imposed under the Finance Bill's further amendment and the Benazir Income Support Programme (BISP) budget has been increased from Rs450 billion to Rs466 billion.

The IMF in mid-June expressed dissatisfaction with the country's initial budget, saying it was a missed opportunity to broaden the tax base in a more progressive way.

With currency reserves barely enough to cover one month's imports, Pakistan is facing an acute balance of payment crisis, which analysts say could spiral into a debt default if the IMF funds do not come through.

There are five days to go before the $6.5 billion Extended Fund Facility (EFF) agreed in 2019 expires on June 30. The IMF has to review whether to release some of the $2.5 billion still pending to Pakistan before then. The tranche has been stalled since November.

The budget revision came after PM Shehbaz met IMF Managing Director Kristalina Georgieva on the sidelines of a global financing summit in Paris last week, followed by a marathon three days of virtual talks between the two sides.

Under the $6.5 billion EFF's ninth review, negotiated earlier this year, Pakistan has desperately been trying to secure the IMF funds, which are crucial to unlock other bilateral and multilateral financing for the debt-ridden country.

(With additional input from APP and Reuters)