Pakistan misses some IMF targets on circular debt, health and education

Pakistan has missed some IMF targets on energy-sector circular debt and health and education spending, though it has made progress in rebuilding foreign exchange reserves, meeting debt repayment needs and advancing tax reforms, Finance Secretary Imdad Ullah Bosal told a National Assembly committee on Thursday during a briefing on the IMF program.

Which IMF targets has Pakistan missed?

Bosal said the government fell short on containing energy-sector circular debt and on health and education spending, with circular debt at the top of the list. He said implementation had generally remained satisfactory, although some targets had not been achieved as planned.

How much has Pakistan received from the IMF so far?

Bosal briefed the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar, on implementation of the International Monetary Fund's programme. He said Pakistan had received $4.1 billion from the IMF under the current programme, with three reviews completed. The programme had also helped advance tax reforms and ease pressure on external payments, he said.

The government would continue efforts to raise tax collection, while tax exemptions had been withdrawn and restrictions imposed on supplementary grants, Bosal said.

What did Bosal say about circular debt and health and education spending?

Bosal said Pakistan had made limited progress towards meeting the IMF's targets for containing energy-sector circular debt. "Some things have not been achieved, with circular debt at the top of the list," he said, adding that the government was nevertheless keeping the debt within a specified limit.

He said the IMF had also set targets for reducing losses at state-owned enterprises and that the government had made substantial efforts to meet them.

However, Bosal acknowledged that targets for health and education spending had not been fully met. "Expenditure on education and health could not be achieved in full," he said.

What did the committee discuss on officials' asset declarations?

The committee also discussed the disclosure of assets by government officials. Qamar said there had been considerable resistance to requirements for officials to declare their assets.

Finance Ministry officials told the committee that the Federal Board of Revenue would provide certain details of officials' assets to the Establishment Division. They said the Establishment Division would take disciplinary action where unusual or unexplained assets were identified. Bosal rejected the suggestion that restrictions had been placed on officials' assets.

Former finance minister Hina Rabbani Khar questioned the scope of the disclosures, saying some information on officials' assets was being withheld on security grounds. "Parliamentarians are required to declare all their assets," Khar said, questioning why similar requirements could not fully apply to government officials.

Committee member Javed Hanif asked officials to provide details of the security concerns being cited to restrict disclosure of officials' assets. Bosal said the Establishment Division would be in a position to explain those provisions. "These rules have been prepared by the Establishment Division," he said.

The committee was also told that information on officials' assets would be shared with relevant authorities where required, while security considerations would determine what information could be made public.