hydrabadi_arab
Trusted Member
The Pakistan government is preparing to place the proposed 174 amendments to various laws sought by the International Monetary Fund (IMF) as part of reforms under its ongoing $7 billion Extended Fund Facility (EFF) and $1.4 billion Resilience and Sustainability Facility (RSF), Finance Secretary Imdadullah Bosal told the National Assembly Standing Committee on Finance and Revenue, chaired by Syed Naveed Qamar.
“There are a total of 174 amendments the IMF wants to be passed,” Bosal said, adding that the government was working on the amendments and had made it clear to the IMF that while the proposals would be presented to parliament, their approval remained parliament’s prerogative.
The proposed reforms span areas including financial-sector governance, state-owned enterprises (SOEs), remittances and climate-related measures.
The discussion comes as an IMF staff mission is in Pakistan for programme reviews. Formal negotiations for the fourth review of the $7 billion EFF and the third review of the RSF are set to begin on Monday. Around $4.5 billion has so far been disbursed by the IMF, while three programme reviews have been completed.
Changes to the Sovereign Wealth Fund (SWF) law are also under discussion. The fund covers five major blue-chip companies, including Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO), with governance and financial reporting standards among the issues being considered.
The government is also discussing remittances with the IMF. Bosal said costly payment-system impediments needed to be addressed, while the Fund had strongly opposed subsidies used to facilitate remittances. Such subsidies, which had previously exceeded Rs120 billion, have already been withdrawn.
Sugar-sector liberalisation is another benchmark under discussion. The federal government has circulated a draft policy, with three provinces agreeing to it while one has raised reservations that remain to be addressed.
The committee also questioned the government's strategy for power distribution companies (Discos), particularly the future of loss-making entities if profitable companies are privatised.
Members stressed that IMF-related reforms should not be assessed solely on compliance with programme benchmarks, but also on whether they produced measurable economic and social outcomes.
The committee sought clearer timelines for outstanding commitments and information on the impact of reforms on citizens, businesses and taxpayers. It also called for fiscal consolidation to be accompanied by measures supporting investment, exports, employment and sustainable economic growth.
Programme commitments discussed before the committee include parliamentary consideration of supplementary expenditure beyond approved budgets, restrictions on new tax amnesties and preferential tax treatment, energy-sector reforms and implementation of the National Fiscal Pact with the provinces.
“There are a total of 174 amendments the IMF wants to be passed,” Bosal said, adding that the government was working on the amendments and had made it clear to the IMF that while the proposals would be presented to parliament, their approval remained parliament’s prerogative.
The proposed reforms span areas including financial-sector governance, state-owned enterprises (SOEs), remittances and climate-related measures.
The discussion comes as an IMF staff mission is in Pakistan for programme reviews. Formal negotiations for the fourth review of the $7 billion EFF and the third review of the RSF are set to begin on Monday. Around $4.5 billion has so far been disbursed by the IMF, while three programme reviews have been completed.
Changes to the Sovereign Wealth Fund (SWF) law are also under discussion. The fund covers five major blue-chip companies, including Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO), with governance and financial reporting standards among the issues being considered.
The government is also discussing remittances with the IMF. Bosal said costly payment-system impediments needed to be addressed, while the Fund had strongly opposed subsidies used to facilitate remittances. Such subsidies, which had previously exceeded Rs120 billion, have already been withdrawn.
Sugar-sector liberalisation is another benchmark under discussion. The federal government has circulated a draft policy, with three provinces agreeing to it while one has raised reservations that remain to be addressed.
The committee also questioned the government's strategy for power distribution companies (Discos), particularly the future of loss-making entities if profitable companies are privatised.
Members stressed that IMF-related reforms should not be assessed solely on compliance with programme benchmarks, but also on whether they produced measurable economic and social outcomes.
The committee sought clearer timelines for outstanding commitments and information on the impact of reforms on citizens, businesses and taxpayers. It also called for fiscal consolidation to be accompanied by measures supporting investment, exports, employment and sustainable economic growth.
Programme commitments discussed before the committee include parliamentary consideration of supplementary expenditure beyond approved budgets, restrictions on new tax amnesties and preferential tax treatment, energy-sector reforms and implementation of the National Fiscal Pact with the provinces.
