Pak may be surrendering its sovereignty to IMF, but here’s why it may have no choice | Exclusive

In an International Monetary Fund (IMF)-conditioned review of Pakistan’s anti-corruption framework, the government has agreed to introduce more amendments to the National Accountability Ordinance and the Federal Investigation Act, revealed an interim official report.

The task force has recommended amendments to the NAO, 1999, and the FIA Act, 1974, according to the report.

The IMF slapped the condition last year after the government made changes in the NAO that equally benefited the politicians as well as the bureaucrats by saving their corruption of almost Rs 1100 billion.

Pakistan, which is battling crippling economic, food, and energy crises, has already handed over SBP to the IMF by passing the State Bank of Pakistan (Amendment) Bill 2021.

According to market experts, Pakistan is losing its economic independence by accepting IMF’s tough conditions but it has no way to refuse the international creditors.

The IMF has agreed to release the tranche of $1.3 billion conditionally. The agreement will be announced after February 9.

Here are the top conditions set by the IMF:

1. Cut defence budget by 10%-20% per annum gradually

2. Declare assets of civil and military bureaucracies

3. Need to release Rs 300 billion mini-budget this month

4. Pakistan needs to counter circular debt of Rs 900 billion; have to impose heavy taxes and levies on electricity, gas and energy tariffs — plus need to apply GST of 17% on all petroleum products

5. Major amendments in finance-related laws with the consultation of IMF, like in accountability, audits, money laundering under the FATF conditions/recommendations

It is expected that both sides will strike a staff-level agreement by the conclusion of the talks on February 9, 2023. Then the IMF’s executive board will consider the approval of the next tranche probably in March.

Read all the Latest News here