The International Monetary Fund (IMF) has raised concerns regarding the federal government’s provision of Rs344 billion in grants to sectors including defence, Independent Power Producers (IPPs), and other areas without parliamentary consent, which the IMF sees as a violation of the loan agreement.
The grants, totaling Rs344.66 billion in the current fiscal year, included payments for several initiatives and projects. Among the disbursements, Rs115 billion was allocated to IPPs, while Rs30 billion was directed to assist flood victims in Sindh.
Additionally, Rs6 billion was provided to the Federal Board of Revenue (FBR), Rs14 billion for solarization projects, and Rs23 billion for anti-terrorism initiatives. The government also spent Rs2 billion on technology upgrades.
Other allocations included Rs3.7 billion for the Reko Diq project, Rs520 million for the Special Investment Facilitation Council (SIFC), and Rs7 billion for parliamentarians’ schemes.
The IMF’s concerns underline the importance of adhering to proper legislative processes, raising questions about the fiscal management of such substantial expenditures.
Earlier, it was reported that the government has requested approval from the National Assembly for nearly Rs344 billion in additional spending incurred during the current fiscal year without prior parliamentary approval.
Under the Constitution, the federal government can approve supplementary grants for unforeseen expenses without prior National Assembly approval, though they must seek post-approval following the same process as the new budget.
The IMF, under the country’s $7 billion bailout agreement, has emphasised fiscal discipline, discouraging supplementary grants through internal reallocations unless necessary for natural disasters.
