The International Monetary Fund (IMF) has raised serious concerns over the federal government’s issuance of supplementary grants worth Rs344.64 billion during the current fiscal year without obtaining prior approval from the National Assembly. The move, according to the IMF, violates the terms of Pakistan’s ongoing loan agreement under the Extended Fund Facility (EFF).
An official document reveals that these funds were disbursed across a range of sectors, including power, defense, disaster relief, and development initiatives. The government is now seeking post-facto approval from the legislature, a step that has not eased the IMF’s objections, which emphasize the need for strict adherence to agreed fiscal discipline measures.
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The single largest allocation of Rs115 billion went to Independent Power Producers (IPPs), a recurring issue in Pakistan’s financial dealings with the IMF due to its heavy strain on public finances. Additionally, Rs59 billion was earmarked for defense, Rs30 billion for flood relief in Sindh, and Rs14 billion for converting agricultural tube wells to solar power.
Other notable allocations include Rs23 billion for enhancing the military’s counter-terrorism capabilities, Rs3.7 billion for the Reko Diq mining project, and Rs520 million for the Special Investment Facilitation Council (SIFC). A total of Rs7 billion was designated for parliamentarian-linked development schemes, alongside Rs6 billion directed to the Federal Board of Revenue (FBR).
The supplementary expenditures also covered costs incurred by key federal institutions including the Supreme Court, Islamabad High Court, and Ministry of Interior. The IMF’s objections may add to the pressure on Pakistan as it seeks continued support under the EFF framework.
