More shame for Pakistan as it can't make its budget too, IMF takes charge, imposes 11 new conditions on..., issues strong warning against...
More shame for Pakistan as it can't make its budget too, IMF takes charge, imposes 11 new conditions on..., issues strong warning against...
After a long struggle, Pakistan is finally set to receive a USD 1 billion loan from the International Monetary Fund (IMF). For quite some time now, Pakistan has been depending heavily on loans from institutions like the World Bank and IMF, as well as countries like China. It has also received cheap oil and financial support from Saudi Arabia on several occasions.
But this constant borrowing has come at a cost as Pakistan's financial independence has gradually weakened. The situation is now such that the country can't even finalize its national budget on its own. On June 2, Pakistan plans to present its national budget. However, before doing so, it must consult the IMF.
In fact, an IMF team has already arrived in Islamabad. Pakistani finance ministry officials will now discuss the budget details with this team, and only after those talks will the final proposals be decided. This shows how much Pakistan's economic decisions now rely on external approval.
As par various reports, the IMF will play a key role in deciding how much money Pakistan can allocate for infrastructure in its upcoming budget. It will also help determine how much should go towards paying interest on existing loans and how much should be set aside for economic reforms. This isn't new as for the past several years, the IMF has had a strong influence on how Pakistan prepares its budget.
The IMF insists that Pakistan's budget must focus on maintaining economic stability. It also wants the country to set aside a financial buffer to deal with unexpected situations. IMF's 11 new conditions on Pakistan
Before approving the latest loan installment, the IMF has placed 11 new conditions on Pakistan, bringing the total number of conditions imposed so far to 50. These range from spending cuts to structural reforms, showing how tightly Pakistan's economy is now tied to IMF oversight, according to local Pakistani news portal Express Tribune's report on 18 May 2025.
According to IMF conditions, Pakistan's total national budget has been capped at 17.6 trillion Pakistani rupees. Out of this, the government is allowed to spend only 1.07 trillion rupees on development projects.
The IMF has also pushed for strengthening the tax system, including a proposal to tax agricultural income. Additionally, Pakistan's government has been asked to publicly release a Governance Action Plan, ensuring transparency and allowing citizens to monitor the reforms being implemented.
The IMF has also restricted subsidies on electricity bills. This means the Pakistani government can no longer offer excessive discounts to its citizens on power rates, and must limit any relief beyond a certain point.
The government has also been directed to make and publish a plan to outline the post-2027 financial sector strategy to highlight the regulatory environment from 2028 onwards, according to the local news portal's report.
The IMF also directed the government to issue a notification on semi-annual gas tariffs to maintain the energy tariffs at cost recovery levels by February 15, 2026.
As part of the condition, Pakistan also has to submit a bill for listing all quantitative restrictions on used motor vehicle imports, which are less than five years old by end of July 2025.
According to the news portal's report, vehicles up to three years old can currently be imported into the nation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
an hour ago
- India.com
Israel-Iran war triggers fear in Pakistan due to...; Pakistani MP remembers India's Operation Sindoor, says Islamabad could be...
Pakistan fears it could be next on Israel's 'list'. Israel-Iran war: The raging Israel-Iran war has also triggered panic among other Muslim nations, including Pakistan, fearing that Israel has launched a 'crusade' against the entire Muslim world, and they could be next on the Jewish state's 'hit-list' after Gaza, Lebanon, Syria, Yemen, and more recently Iran. 'Pakistan could be next' A recent statement made by Pakistani MP Asad Qaiser in the country's parliament has gone viral, in which the politician warned that the Pakistan could be next on Israel's list, and military cooperation between India and Israel was the biggest threat to Islamabad. Speaking in the National Assembly of Pakistan– lower house of the country's parliament– Asad Qaiser flagged the threat Islamabad faces due to India-Israel military ties, and also warned that Israel could also attack Pakistan as the country shares a 1200km border with Iran. 'During the recent India-Pakistan conflict, the majority of drones and loitering munitions used by Indian forces were Israeli made,' he said, adding 'Allah have mercy, after Iran, its (Israel's) next target could be Pakistan'. The parliamentarian also urged the Pakistani government to stand with Iran in its war with Israel. 'We are with our Iranian brothers and fully support them at this difficult and dangerous period of time,' he added. Israel-Iran war Israel launched its fiercest attack on Iran, unleashing a wave of pre-dawn air strikes on Iranian cities on Friday, including capital Tehran, under Operation Rising Lion, in which several top Iranian nuclear scientists and military commanders, including IRGC chief Hossein Salami, commander Ghulam-Ali Rashid, nuclear scientist Dr. Mohammad Tehranchi, nuclear scientist Dr. Fereydoon Abbasi and Iran's Armed Forces Chief of Staff Major General Mohammad Bagheri. Tehran vowed to avenge the Israeli attack, stating that its response will be anything beyond what Israel and ally, the United States, could ever imagine, triggering the fears of a full-scale Iran-Israel war. On the intervening night of Friday and Saturday, Iran responded with a barrage of missiles and drones that struck several Israeli cities and major population centers, including Tel Aviv. Israel launched a fresh wave of strikes on Iran on Saturday, killing more of Iran's top military brass and nuclear scientists. Israel also targeted Iran's oil refineries in a series of pre-dawn airstrikes on the intervening night of Saturday and Sunday.
India Gazette
an hour ago
- India Gazette
"Op Sindoor primarily an anti-terrorist strike; had very little to do with Pakistan," Former Dy NSA
New Delhi [India], June 15 (ANI): Former Deputy National Security Advisor Pankaj Saran emphasised India's firm stance against terrorism, highlighting Pakistan as the epicentre of the issue. Speaking to ANI on the sidelines of a event here, Saran clarified that Operation Sindoor was an anti-terrorist strike, not aimed at Pakistan itself but targeting terrorist infrastructure. 'The message was simple that we have a problem on our hands, which is terrorism and the epicentre of that problem is next door to us, which is Pakistan. The Operation Sindoor had very little to do with Pakistan. It was primarily an anti-terrorist strike. If the terrorist infrastructure is located in Pakistan, that is too bad. We've been telling the Pakistani authorities that either you deal with it or someone else will. The operation that was conducted was only against terrorist infrastructure. It's important to keep this distinction,' he said. He underscored the nexus between terror groups and Pakistan's military, describing it as an instrument of state policy. 'The second message was that the epicentre is Pakistan. There is a direct nexus between terror groups and the army. It is part and parcel of their instruments of state policy,' he said. Saran also stressed that India's fight against terrorism aligns with global concerns, noting, 'India is not alone; the entire world has been a victim of terrorism.' On India's growing global stature, Saran highlighted the country's consistent inclusion in G7 discussions, even predating Prime Minister Narendra Modi's tenure. 'India has been a regular invitee, even before he (PM Modi) became a Prime Minister, even in the pre-Modi era, India was an invitee. I think the invitation is a recognition of a reality that everyone accepts today, which is that you cannot discuss the state and the future of the global economy without you cannot have a solution to any global problem without must always be a part of the solution, never a part of the problem. Which is why we have been invited despite all the bilateral problems with Canada, because the G7 feels that they need to have India on their side,' he said. On Sunday morning, Prime Minister Modi departed from New Delhi for Cyprus. His visit to Cyprus will take place from June 15 to 16. Following that, he will participate in the G-7 Summit in Kananaskis, Canada, on June 16 and 17, and will conclude his trip with an official visit to Croatia on June 18. (ANI)
NDTV
2 hours ago
- NDTV
BCCI Trims Daily Allowances For Staff, Streamlines Travel Policy In Big Move
The daily allowances of the BCCI staff across departments, which have not been paid since January, will finally be released following the streamlining of the domestic 'tournament allowance policy' by the board's top brass. As per the existing BCCI travel policy, the employees are paid per diem of Rs 15,000 for short-term travel (up to four days) and Rs 10,000 for long travel usually relating to the Indian Premier League (IPL), Women's Premier League (WPL) and ICC events hosted by India. A one time incidental allowance during the travel is Rs 7500. According to the revised policy, the incidental allowance component has been removed and employees will now be paid a flat Rs 10,000 per day for their time on the road. The IPL window is slightly longer than two months while ICC events also last at least a month. A BCCI source told PTI that after tax deduction at source, the per day allowance comes to Rs 6500. As the policy was going to be revised, the BCCI staff including the finance, operations and media department have not been paid their daily allowances for the IPL and WPL but now that the policy has been formulated, their dues should be cleared soon. "A clear cut policy was needed in terms of allowances as some employees were claiming allowances even when they were operating out of the Mumbai headquarters during tournaments. Now that it has been devised, the dues will be cleared soon," added the source. For more clarity, an employee who is travelling for the whole of 70-day IPL would be eligible for a daily allowance of Rs 10,000 with the total claiming amounting to Rs 7 lakh. For someone who has limited travel during the IPL would be eligible to claim only 60 percent of the 70-day allowance and someone who is not travelling at all can claim 40 percent of the amount accrued for 70 days. As far as foreign travel is concerned, most BCCI employees are paid USD 300 per day. On the other hand, the honorary office-bearers including president, secretary, treasurer, vice-president and joint secretary, are entitled to a daily allowance of USD 1000 on foreign tours. They are also paid Rs 40000 for a one day meeting within India and Rs 30000 per day for a multi-day domestic work trip.
