IMF Urges Pakistan to Review How Money is Shared

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By Fayyaz Sidhu

IMF Urges Pakistan to Review How Money is Shared

The International Monetary Fund (IMF) has asked Pakistan to talk again about how money is divided between the central government and the provinces. They want to fix the problem of not enough money going where it’s needed.

Table of contents:

  1. IMF Calls for Revisiting Fund Allocation in Pakistan
  2. Pakistan Urged by IMF to Address Fiscal Disparities
  3. Challenges in NFC Award Review: IMF’s Concerns for Pakistan
  4. Government Faces Hurdles in Balancing Provincial Spending
  5. IMF Highlights Fiscal Imbalance: Pakistan’s Funding Dilemma

Nathan Porter, who leads the IMF team in Pakistan, brought up this issue during discussions about giving Pakistan a $1.1 billion loan. He said that the way money is divided between the federal government and the provinces isn’t fair. Pakistan’s Finance Minister, Muhammad Aurangzeb, was part of these discussions.

IMF asks Pakistan to revisit NFC award

The IMF thinks it’s important to rethink the National Finance Commission (NFC) award because it’s not distributing money and responsibilities fairly between the central government and the provinces.

The Pakistani government said that they can’t change how much money the provinces get without changing the country’s laws. And all the provinces need to agree on any new plan.

The last time they made a plan like this was in 2010, but they haven’t been able to agree on a new one since then.

Getting all the provinces to agree on how to divide money fairly is a big challenge for the government, especially since the provinces have different needs and priorities.

The IMF also pointed out that the provinces are spending too much money, which could make it hard for the government to reach its goal of saving Rs400 billion this year.

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