The International Monetary Fund (IMF) has directed Pakistan to exclude 168 development projects from its upcoming federal budget, citing that these initiatives fall under provincial jurisdiction. Valued at Rs. 1,100 billion, the projects were being funded by the federal government despite being the constitutional responsibility of the provinces.
So far, Islamabad has already allocated Rs. 300 billion toward these projects. However, following the IMF’s latest instructions, the remaining Rs. 800 billion in funding has now been suspended.
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This directive comes as part of Pakistan’s ongoing discussions with the IMF. During a meeting in Washington D.C., Finance Minister Muhammad Aurangzeb assured IMF Managing Director Kristalina Georgieva of the government’s continued commitment to economic reforms. He also expressed gratitude for the recent finalization of the Staff-Level Agreement under the Extended Fund Facility (EFF), as well as the approval of a new Resilience and Sustainability Facility (RSF) program.
