Government shying away from budget approval before IMF delegation agrees – Pakistan

The government is deliberately violating an Act of Parliament by not seeking the approval of the Federal Cabinet for the Budget Strategy Paper 2024 pending the approval of the fiscal policy by the International Monetary Fund (IMF).

The Tribune reports that the decision shows that the finance ministry has prioritized the IMF bureaucracy over the elected representatives of the people, who sit in the federal cabinet and the standing committees on finance of the National Assembly and Senate.

Sources in the finance ministry said the government has put on hold the plan to get approval for the budget strategy paper till May 10.

According to the Act, the federal government has to approve the budget strategy paper containing fiscal and monetary projections for the medium term by May 10 every year.

Sources revealed that the decision to postpone the presentation of the budget strategy paper in the federal cabinet has been taken due to the upcoming visit of the IMF. He said that without the approval of the IMF, the figures approved by the Cabinet would not have any significance.

A finance ministry spokesperson did not respond to a query on whether the cabinet’s approval would be sought before May 10 or wait until the end of the IMF mission.

Sources in the Ministry of Finance revealed that the Ministry has drafted the Budget Strategy Paper, which will first be shared with the IMF for review.