Government’s plans for relief in the budget 2024-25 were thwarted by the tough conditions set by the International Monetary Fund (IMF), as revealed by FBR Chairman Zubair Tiwana. Despite the desire to provide relief, the IMF did not agree to these measures, especially for the salaried class.
During a meeting of the National Assembly’s Standing Committee on Finance, Towana expressed the IMF’s reluctance and lack of trust in negotiations due to past instances where reforms were not implemented on time.
Moreover, there was no intention to raise taxes on electricity bills, but the IMF’s tough conditions left the government with no choice. The barriers faced in implementing relief measures highlight the challenges posed by international financial institutions like the IMF.
It is essential for the government to find a balance between meeting IMF requirements and addressing the needs of its citizens to ensure sustainable economic growth.