Islamabad: The deteriorating economic situation of Pakistan has dried all the options for the country to overcome monetary misery except to surrender to existing international monetary funds to avoid full financial disasters.
According to senior government officials, the peak authority in the Ministry of Finance has decided to consult with Prime Minister Imran Khan to develop a new strategy to introduce the law mandated by the IMF to continue the Deferred $ 6 billion extension facility (EFF).
The IMF has reconnected loans with parliamentary approval for the passing of two key bills – the Amendment Act (fourth) Bill and Bill of the Autonomy of Bank of Pakistan (SBP).
Tax Act (Fourth) Amendment Bill imagined the withdrawal of GST exclusion in hundreds of commodities in an effort to increase tax revenues with an estimated RS 350 billion (Pakistani Rupee).
The fear of the government that imposes this new tax at this stage – when inflation in November was reported at 11.53% – could trigger a strong public counterattack.
The SBP autonomy bill, meanwhile, will provide the independence of the central bank in all matters of monetary policy, exchange rates, and recruitment.
The government believes that because of strong political opposition, it is impossible for the ruling party and its allies to pass the bill in parliament.
Knowing the limitations, the government has tried to convince the IMF that it will introduce a mini budget and change the law through the Presidential Regulation – General Practices in the powerful government.
In addition to withdrawal of tax exemptions and autonomy for the central bank, the IMF has also encouraged the government to reduce the public sector development program of 200 billion, taking it to Rs 700 billion.
Meanwhile, the Saudi government has deposited a $ 3 billion loan with Pakistan to increase foreign exchange reserves but also depends on the remaining Islamabad under the IMF program.
The provisions of the agreement, which are no longer kept secret, allows Riyadh to attract the amount within 72 hours if Islamabad leaves the IMF program.