A country on the brink shouldn’t violate an agreement with the IMF.


Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said it does not benefit the country with a sinking economy to violate the agreement with IMF in the budget.

Continued violation of the agreement with the lender is irresponsibility which should be ended as soon as possible, he said.

Mian Zahid Hussain said that the ambiguities and contradictions in the budget should be removed immediately so that it can become a workable document.

Talking to the business community, the veteran business leader said that the country was on the brink of disaster but important economic decisions were still being taken on political grounds which was astonishing.

Many issues, including revenues and expenditures, are unclear in the budget, while the IMF has reservations about oil subsidies, current account deficits and direct taxes. He added.

It is impossible to get a loan from the IMF unless our government responds to the reservations of the lender.

Mian Zahid Hussain said that Finance Minister Miftah Ismail has admitted that IMF is not happy with some budget proposals but still no adjustment is being made which is worrisome as it is affecting the economy and the value of rupee.

Delays in important decisions are fuelling inflation which could rise from the current 13 percent to 23 percent, he warned.