The International Monetary Fund (IMF) has expressed reservations about several of the government’s budget targets, particularly those linked to the Public Sector Development Program (PSDP), according to sources familiar with the matter.
IMF:
A key issue highlighted by the IMF is the massive backlog of incomplete development projects, with costs ballooning beyond Rs. 10,000 billion. This staggering amount reflects the financial burden of approved but unfinished schemes.
Prime Minister response:
In response, Prime Minister Shehbaz Sharif has reportedly instructed the Ministry of Planning to submit comprehensive reports on 500 active development projects, most of which are infrastructure-based.
Meanwhile, the government continues to struggle with finalizing next year’s development budget. Sources indicate that disagreements persist between the Ministry of Finance and the Ministry of Planning, with no consensus yet reached on budget allocations.
Connecting the delay, the prescribed meeting of the Annual Plan Coordination Committee (APCC) has been postponed to finalize the PSDP goals today. Later a new date will be announced. The committee is expected to evaluate this year’s development expenses and propose strategies for the upcoming financial year.
— Updates to follow as more details emerge.
Keywords:
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