Finance Division expects responsible reporting on economic issues

September 20, 2023 (MLN): News reporting on economic issues of national importance should be responsible and not based on limited information, the Finance Division on Wednesday said while rebutting the newsflow, saying that $4.5 billion external financing shortfall may rankle the International Monetary Fund (IMF). 

The statement added that the aforestated news item misrepresents Pakistan’s external financing requirements and interest payments for FY2023-24.

All budget figures for FY2023-24 were shared with the IMF while reaching the SBA agreement in June 2023. it further said.

The Ministry of Finance works closely with the IMF and monitors progress on all actions under the IMF SBA, including fiscal and reserve targets.

Separately, the Economic Affairs Division and development partners hold periodic portfolio reviews to monitor inflows from multilateral and bilateral sources.

The Ministry is also liaising with commercial banks regularly and expects to conclude transactions under negotiation soon. 

The government remains committed to maintaining fiscal discipline throughout the current fiscal year. It is being ensured that the budget for FY2023-24 is strictly adhered to and that all expenditures remain in line with commitments.

To this end, the Finance Division remains engaged with all Ministries / Divisions and provincial governments to meet general government targets. The Finance Division frequently reviews the fiscal position to ensure fiscal stability. 

"The news item’s reference to a potential overshoot in the government’s interest expenditure due to declining foreign inflows or persistently high policy rates depicts a limited understanding of fiscal variables," the statement reads.

The government remains on track to achieve its primary balance targets and to successfully conclude the upcoming review with the IMF.

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