IMF Expresses Concern Over Delays in State-Owned Enterprise Laws and Demands WAPDA Governance Reforms
ISLAMABAD: The International Monetary Fund (IMF) has voiced serious concerns over the failure to push forward vital legal changes in the clear demarcation of state-owned entities amid ongoing economic and structural discussions with the IMF for the next tranche review.The government has failed to meet deadlines for completely integrating laws of the various state-owned enterprises, official sources said, which equated the fourth missed deadline since the national framework of state-owned enterprises was enacted.
Key Highlights of the IMF-Pakistan TalksExtension for Legal Amendments: The government missed the previously agreed deadlines and now the authorities have obtained a new extension from the IMF, which will grant all the necessary legislative amendments by the middle of November.
WAPDA Governance Overhaul: The IMF mission’s concerns were raised about the lack of an effective governance model in Water and Power Development Authority (WAPDA), pointing out that it has called for the need for comprehensive changes in its institutional and administrative set-up.NAB Appointment Transparency:
The continuing discussions also touched upon the progress being made towards making the selection of the chairman of the National Accountability Bureau (NAB) fully transparent, while changes to the Accountability Ordinance continue to be considered.The IMF mission also had questions about agricultural income tax collection targets, according to sources at the Finance Ministry. In the briefing, the federal side supported the local farmers’ position: High operating costs and production costs increasing, farmers facing constant losses.Financial realities: The delegation was informed that most of the farmers in Pakistan are financially unable to withstand heavy income tax burden including the other factors affecting the security of regions and supply chains in Pakistan.Provincial Revenue Goals: In the interim, the provincial governments are taking steps to increase the amount of agricultural income tax and increase non-tax revenues to achieve agreed fiscal surplus goals.