ISLAMABAD   -   Pakistan has once again sought the United States' help to unlock the stalled Internation­al Monetary Fund (IMF) loan programme.

Donald Blome, Am­bassador of the United States of America to Pa­kistan, called on Feder­al Minister for Finance and Revenue Senator Mohammad Ishaq Dar.

The finance minister shared the economic policies and priorities of the government to address the challeng­ing economic situation and set the economy on the path to stability and growth. 

The two sides also ex­changed views about ar­eas of common inter­est and how the existing bilateral relations be­tween the two countries can be enhanced further. 

The finance minister further informed the US Ambassador about the govern­ment’s budgetary measures to reduce the fiscal gap in order to meet its national as well as international financial obliga­tions. He also informed the en­voy about the progress on the on-going talks with IMF and stated that the government is committed to complete the program.

Donald Blome expressed the confidence in the policies and programmes of the govern­ment for economic sustain­ability and socio-economic up­lift of the masses. He extended his support to further promote bilateral economic, invest­ment and trade relations be­tween both the countries. 

Finance Minister Senator Ish­aq Dar thanked the US Ambas­sador and reiterated the desire of the government to further deepen bilateral trade and in­vestment ties with the USA.

The IMF has recently raised serious objections over the budget for fiscal year 2023-24, which has further nar­rowed the chances of revival of the Extended Fund Facility programme. The Fund has also objected to the new tax am­nesty proposed in the budget while saying that it is against the program’s conditionality and governance agenda and creates a damaging precedent. It has also stated that the draft fiscal year 2024 Budget miss­es an opportunity to broad­en the tax base in a more pro­gressive way, and the long list of new tax expenditures re­duces further the fairness of the tax system and under­cuts the resources needed for greater support for vulnerable BISP recipients and develop­ment spending.

In response to the IMF, the Ministry of Finance has issued detailed a statement. It says, “While we are firmly commit­ted to the IMF Program, and our negotiations are on-going; however, since some specific issues have been raised in the press, we think that it would be appropriate to clarify our posi­tion on these issues”.

According to the ministry, the 9th IMF Review was con­ducted in early February 2023 and the government of Paki­stan completed all technical issues at a fast pace. The only outstanding issue was of ex­ternal financing which we un­derstand was also amicably resolved in the Prime Minis­ter’s telephonic call of 27th May 2023, with the IMF MD. “Though the Budget FY 24 was never a part of the 9th Review, however, in line with PM’s commitment to the MD IMF, we shared the Budget num­bers with the IMF Mission. And we are continuously en­gaged with them even on the Budget”.