The report stated that only the next elected government will have the authority to release supplementary grants, with the federal government having no such authority.
It was also mentioned that a certain amount will be issued to government ministries and departments, with a directive to not exceed their limits.
Last week, Pakistan received a $700 million loan tranche from the International Monetary Fund (IMF) under a nine-month Stand-By Arrangement (SBA).
Related: Pakistan receives $700mn loan tranche from IMF
This development comes after the IMF’s Executive Board completed the first review of Pakistan’s economic reform programme supported by the SBA. The Board’s decision allowed for an immediate disbursement of around $700 million, bringing total disbursements under the arrangement to about $1.9 billion.
The IMF’s approval follows the staff-level agreement reached between the Fund and Pakistan on November 15, 2023, emphasizing the nation’s commitment to implementing key reforms.
The agreement supports the authorities’ commitment to advance the planned fiscal consolidation, accelerate cost-reducing reforms in the energy sector, complete the return to a market-determined exchange rate, and pursue state-owned enterprise and governance reforms to attract investment and support job creation, while continuing to strengthen social assistance.
The current IMF program of $3 billion is scheduled to end in the second week of April 2024, with around $1.8 billion remaining un-disbursed. The Fund released $1.2 billion first tranche in July.