The Government of Khyber-Pakhtunkhwa has refused to abide with an International Monetary Fund (IMF) condition to run a surplus budget.
K-P Finance Minister Taimur Khan Jhagra, in a letter addressed to Federal Finance Minister Miftah Ismail, said the K-P government was not in a position to run a surplus budget in line with the IMF dicktat. Jhagra said the provincial government's earlier assent to an MoU stipulating the same had been taken in the greater national interest of the nation.
IMF MOU Follow Up Letter - Draft
He goes on to add that it would be virtually impossible for the provincial government to run a surplus in light of the objections he had made his federal counterpart cognisant of earlier. These include an immediate revival of the NFC award, monthly transfers of hydel net profits, budgetary allocations for the erstwhile FATA and resolution of all other outstanding financial province-centre issues.
The issues along with the expected financial strain caused by the recent floods in the province are set to present in a Rs100 billion "unfunded liability" on the provincial budget. What impact the development has on the upcoming release of an IMF tranche remains to be seen.
Earlier on Thursday, Pakistan Tehreek-e-Insaf Fawad Chaudhry told a private news channel that both, Punjab and K-P could very well renege on IMF commitments. He said the federal government would be incapable of securing a deal then.
The former information minister said all political parties must give space to one another. He said Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan would only speak to rival forces on the conduct of general elections.
Chaudhry said the PTI had not secured a deal of the ilk the current ruling coalition had with the IMF. The PTI's deal with the IMF, he claimed, provided for subsidies on amenities including power.
K-P Finance Minister Taimur Khan Jhagra, in a letter addressed to Federal Finance Minister Miftah Ismail, said the K-P government was not in a position to run a surplus budget in line with the IMF dicktat. Jhagra said the provincial government's earlier assent to an MoU stipulating the same had been taken in the greater national interest of the nation.
IMF MOU Follow Up Letter - Draft
He goes on to add that it would be virtually impossible for the provincial government to run a surplus in light of the objections he had made his federal counterpart cognisant of earlier. These include an immediate revival of the NFC award, monthly transfers of hydel net profits, budgetary allocations for the erstwhile FATA and resolution of all other outstanding financial province-centre issues.
The issues along with the expected financial strain caused by the recent floods in the province are set to present in a Rs100 billion "unfunded liability" on the provincial budget. What impact the development has on the upcoming release of an IMF tranche remains to be seen.
Earlier on Thursday, Pakistan Tehreek-e-Insaf Fawad Chaudhry told a private news channel that both, Punjab and K-P could very well renege on IMF commitments. He said the federal government would be incapable of securing a deal then.
The former information minister said all political parties must give space to one another. He said Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan would only speak to rival forces on the conduct of general elections.
Chaudhry said the PTI had not secured a deal of the ilk the current ruling coalition had with the IMF. The PTI's deal with the IMF, he claimed, provided for subsidies on amenities including power.