Defence Minister Khawaja Asif has mentioned the finance ministry has no funds for elections. Pakistan is dealing with a serious financial disaster and is grappling with excessive exterior debt, a weak native forex and dwindling overseas alternate reserves.
New Delhi,UPDATED: Mar 25, 2023 08:12 IST
Pakistan’s Defence Minister Khawaja Asif mentioned the finance ministry has no funds for elections (Photo: File)
By India Today World Desk: Addressing worldwide media at a joint press convention, Pakistan Defence Minister Khawaja Asif mentioned the finance ministry has no funds for elections, ARY information reported.
Cash-strapped Pakistan is awaiting a much-needed $1.1 billion tranche of funding from the Washington-based world cash lender, which was initially resulting from be disbursed in November final yr. The nation is dealing with a serious financial disaster and is grappling with excessive exterior debt, a weak native forex and dwindling overseas alternate reserves.
Pakistan has carried out a sequence of coverage measures together with elevated taxes, lifting subsidies, increased vitality costs, devaluing rupee and rising rates of interest to the best in 25 years as preconditions for the settlement to unlock the IMF funding.
FUEL-PRICING SCHEME
Recently, Pakistan Prime Minister Shehbaz Sharif introduced that the federal government would cost prosperous shoppers extra for gasoline. The cash raised can be used to subsidise costs for the poor, who’ve been hit laborious by inflation.
But the IMF says it wasn’t consulted earlier than saying the scheme and has now demanded a proof earlier than signing the settlement.
The plan includes a distinction of round 100 rupees (35 U.S. cents) a litre between the costs paid by the wealthy and poor, in keeping with the petroleum ministry, Reuters reported.
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Petroleum Minister Musadik Malik instructed Reuters that his ministry was understanding particulars. It was not a subsidy however a reduction programme, he mentioned.
“People with larger cars will pay more than people with smaller cars. Smaller cars are more fuel efficient, so people will move towards more fuel-efficient cars,” Malik mentioned.
IMF DEMANDS EXPLANATION
But the IMF’s resident consultant in Pakistan, Esther Perez Ruiz, mentioned the federal government had not consulted the fund in regards to the scheme.
Ruiz, in a message to Reuters, confirmed a media report {that a} staff-level settlement can be signed as soon as a couple of remaining factors, together with the gasoline scheme, had been settled.
Pakistan has simply $4.6 billion in overseas alternate reserves in its central financial institution. It is determined for an IMF settlement to disperse a $1.1 billion tranche from a $6.5 billion bailout agreed in 2019.
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Pakistan’s defence minister Khawaja Asif hit out at former Pakistan PM Imran Khan and mentioned his assassination try allegation is a lie.
Khawaja Asif blamed the PTI chairman for imprisoning the PML-N leaders throughout his tenure. Khawaja Asif mentioned that he was jailed throughout his 3-year tenure and our celebration chief additionally confronted the courts in pretend instances, the report mentioned.
(With inputs from Reuters)
Published On:
Mar 25, 2023
