Tag: Aisha Ghaus Pasha

  • Minister of State for Finance and Revenue criticises IMF for interfering in Pakistan’s internal affairs

    Minister of State for Finance and Revenue criticises IMF for interfering in Pakistan’s internal affairs

    In a strong rebuke to the International Monetary Fund (IMF), State Minister for Finance and Revenue Aisha Ghaus Pasha criticised the international lender for what she called “intervening” in Pakistan’s internal affairs.

    Speaking on Wednesday, the state minister asserted that Pakistan’s actions were within the boundaries of the law, dismissing the statement made by IMF Mission Chief for Pakistan, Nathan Porter, as “extraordinary.”

    While the IMF typically refrains from commenting on domestic politics, Porter had expressed the hope that Pakistan would find a peaceful way forward in line with the Constitution and the rule of law. The state minister expressed her dissatisfaction with the IMF’s involvement in Pakistan’s political situation, emphasising that the delay in reaching a staff-level agreement was detrimental to both Pakistan and the Fund.

    Dr Pasha confirmed reports that Prime Minister Shehbaz Sharif had reached out to IMF Managing Director Kristalina Georgieva. In their conversation, the prime minister assured the IMF chief that Pakistan would fulfill all its obligations.

    On May 27, Prime Minister Shehbaz had contacted Georgieva, requesting her assistance in revitalising the stalled $6.5 billion facility. It is believed that the prime minister urged her intervention to facilitate the completion of the pending ninth review, which would unlock $1.1 billion in financing for the cash-strapped nation.

    Negotiations between the coalition government and the IMF have been ongoing since November to revive Pakistan’s bailout program, with the financing gap being a major hurdle. Approximately $2.7 billion remains to be disbursed from the $6.5 billion program, which is set to expire next month.

    Responding to a question regarding Pakistan’s contingency plan if it fails to convince the IMF before the program’s expiry on June 30, the state minister stated that while there is always a “Plan B,” the Ministry of Finance’s priority is to revive the IMF program.

    With the federal budget announcement scheduled for June 9, both sides are hopeful of reaching a staff-level agreement before then. The successful conclusion of the agreement would provide a much-needed boost to Pakistan’s economy and help address its financial challenges.

    As the negotiations continue, the Pakistani government remains committed to meeting its obligations and finding a way forward to revive the IMF program, while asserting its sovereignty and independence in internal affairs.

  • Pakistan’s petrol relief proposal fails to convince IMF, causing further delays

    Pakistan’s petrol relief proposal fails to convince IMF, causing further delays

    The International Monetary Fund (IMF) has asked Pakistani authorities to provide additional information about a petrol relief package, which has caused further delays in the signing of a staff-level agreement.

    The petroleum ministry’s cross-fuel subsidy proposal was initially rejected by the Fund, which argued that more details are needed to verify its sustainability.

    The Ministry of Finance has distanced itself from the plan, which was announced without the IMF review mission’s knowledge, and has advised the Ministry of Petroleum to withdraw the proposal and work with the Ministry of Finance to iron out the policy details before approaching the IMF for the next review.

    According to The News, Minister of State for Finance, Dr Aisha Ghaus Pasha, has reportedly called the petrol subsidy plan “not workable” and clarified that there is no suggestion of subsidies on petroleum products. The Petroleum Division had suggested cross-subsidies on petroleum products, which is not feasible, she said.

    The talks with the IMF are ongoing, with the only remaining issue being the lender’s confirmation of external financing from bilateral countries, including Saudi Arabia and the UAE, which is currently underway.

    Pasha indicated that financial assistance is expected from bilateral friends soon, which will help finalize the staff-level agreement with the IMF.

  • Pakistan impresses IMF with speedy implementation of agreed measures

    Pakistan impresses IMF with speedy implementation of agreed measures

    During a press conference at the Parliament House on Thursday, Aisha Ghaus Pasha, the Minister of State for Finance and Revenue, announced that the International Monetary Fund (IMF) is not only satisfied with the Pakistani government’s measures to generate an additional Rs170 billion in revenue through the supplementary finance bill, but is also surprised by the speedy implementation of the agreed measures.

    The revenue measures, which were agreed upon with the IMF, have already been put in place. Pasha added that the IMF is also engaged with Pakistan’s friendly countries, including Saudi Arabia, the UAE, and China, with respect to the country’s external financing needs and will update the Executive Board accordingly.

    The minister further stated that discussions with friendly countries on external financing are ongoing, and progress is being made. Virtual talks with the IMF are expected to be held late Thursday night to discuss the Memorandum of Economic and Financial Policies (MEFP), and the government has submitted further clarification to the draft of the MEFP. Pasha noted that the finalization of the MEFP would not take a long time.

    Pasha had earlier briefed the Senate Standing Committee on Finance and shared that the culture of giving subsidies in Pakistan is an old one that needs to end.

    Senator Mohsin Aziz suggested that instead of increasing taxes on luxury items, a ban should be imposed on their import to prevent smuggling. Pasha explained that the government had first considered a total ban on luxury item imports, but the WTO, the IMF, and other international agencies were against it.

    While agriculture income tax is a provincial matter, Pasha emphasized that the sector needs to contribute to the economy. She also stated that, as part of the austerity measures, a scheme is under consideration to enforce the manufacturing of electric vehicles, and the government is deliberating on the financing mode to bridge the gap. Overall, the government has worked quickly on implementing prior actions and commitments to the IMF program.

  • Pakistan did not breach any of IMF conditions by reducing petrol price: Aisha Ghaus Pasha

    Pakistan did not breach any of IMF conditions by reducing petrol price: Aisha Ghaus Pasha

    Following the government’s decision to lower the price of petroleum products, Minister of State for Finance and Revenue Aisha Ghaus Pasha gave the assurance that Pakistan had not violated any of the terms set forth by the International Monetary Fund (IMF).

    According to Geo, there have been numerous rumours surrounding the future of the IMF contract ever since Finance Minister Ishaq Dar cut the price of gasoline last week.

    Since he was sworn in, Dar and his predecessor Miftah Ismail were unable to cooperate because they held divergent views on the IMF agreement and the gradual elimination of gasoline subsidies.

    Pasha responded to the worries by stating that Pakistan had some margin, which the government utilised to relieve the people by lowering the price of gasoline by Rs12.63 per litre.

    She said that the government is still committed to the IMF programme and intends to provide relief to the flood hit masses without tampering IMF conditions.

    Moreover, she said that the government officials are scheduled to meet IMF representatives this month and both sides will discuss things in detail.

    Speaking of the rupee-dollar controversy, she said that the central bank is investigating eight known banks in this issue regarding the banks involved in currency manipulation. Strict action will be taken against any bank found guilty according to Pasha.

    Earlier, the Senate Standing Committee on Finance had summoned the representatives of eight commercial banks that were issued show-cause notices by the central bank on suspicion of currency manipulation.

  • Twitter reacts to only five women in Shehbaz’s cabinet

    Prime Minister (PM) Shehbaz Sharif’s cabinet members took oath on Tuesday. In the new setup, the cabinet has 31 federal ministers, three ministers of state and three advisers in the first phase, as has been said by the coalition government.

    As usual, the federal cabinet includes less ratio of females. The list includes:

    Marriyum Aurangzeb – Minister for Information

    Shazia Atta Marri- Chairperson Benazir Income Support Programme

    Hina Rabbani Khar- Minister for Foreign Affairs,

    Dr Aisha Ghaus Pasha- Adviser to PM on Finance

    Sherry Rehman- Minister of state for Climate change

    Following the oath-taking, social media users criticise the induction of only five females in the new federal cabinet.

    https://twitter.com/meinhiburihun/status/1516276827769212931?s=20&t=RsZ9tvKjcuEwfqKS0mnnYA

    https://twitter.com/jawismm/status/1516345385631035398?s=20&t=RsZ9tvKjcuEwfqKS0mnnYA