Govt in a fix over IMF demands, poll politics

The government will hope to find a balance between reforms to satisfy the International Monetary Fund and measures to win over voters in an imminent election in its budget for 2023-24 to be announced on Friday, analysts said. Pakistan’s IMF programme runs out this month with about $2.5 billion in funds yet to be released as it struggles to strike an agreement with the lender, as it grapples with record inflation, fiscal imbalances and low reserves. A general election is due by November, which the government will be hoping will end turmoil arising from a protest campaign former premier Imran Khan has led since he was ousted last year. Former finance minister Miftah Ismail said it was essential for the government to secure IMF funding so there was little chance of an expansionary budget. “Without the IMF, it would be very difficult for Pakistan to survive the next fiscal year, so I’m sure the government will come up with a budget that is more or less in line with IMF prescriptions,” Ismail said.