Govt to keep lid on funds to meet IMF targets

Despite protests from the Ministry of Planning, the Ministry of Finance has decided to keep the lid on federal financing of development and recurrent expenditures through back-loaded releases of funds to meet the IMF’s primary surplus targets at any cost. According to fresh notifications from the Ministry of Finance, the Ministry of Planning, Development and Special Initiatives shall authorise only 15 per cent of funds for approved development projects in the first quarter (July-September) of the current fiscal year. This will be followed by 20pc in the second quarter (October-December), 25pc in the third quarter (January-March), and 40pc in the fourth quarter (April-June). Under the $7 billion new bailout package approved on Saturday, the government has promised the IMF that it would ensure “underlying general government primary surplus of 1pc of GDP (2pc in headline terms)”, according to an IMF announcement.