KARACHI: Business community has expressed fears of ‘IMF-dictated’ budget as Finance Minister Ishaq Dar, contrary to past practices, has not approached trade and industry leadership for their input about for the upcoming budget scheduled to be presented on June 9.
Business leaders regret that the PDM government has not consulted them about include their recommendations in the budget for 2023–2024 as there is less than a month remaining. This has fueled concerns that the budget would be dictated by the IMF, further complicating the economic situation.
“Traditionally successive governments used to engage the business community in the budget-making process by holding consultative sessions with apex chambers, businessmen, industrialists, etc,” Site Association of Industry (SAI) president Riazuddin was quoted as saying in Dawn.
The Site director recalled that Mr. Dar used to hold day-long discussions with the trade and industry bodies as a “grand finale” before the budget declaration in prior administrations.
“We haven’t received an invitation yet. We don’t know if the administration is creating the budget on its own initiative or if the IMF is dictating it,” he said.
Irfan Iqbal Sheikh, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), expressed his concerns about the government’s lack of progress in starting a consultative process with the business sector in general and the top body in particular.
The top chamber wants to talk to the government about its ideas for industrial, commerce, shipping, and transportation, taxation, small and medium-sized enterprises, agricultural, information technology, and monetary and fiscal policy. “Budget-making is the opportunity where we can have meaningful course correction based on ground realities, regional and global business environment, and national interest,” he said.
Meanwhile, the International Monetary Fund (IMF) on Sunday stressed that staying within the policy framework agreed for the review and sufficient financing from partners remain key to regaining macroeconomic stability.
Washington-based lender said that it has taken note of recent political developments, and hoped peaceful way forward is found.
The IMF stressed that staying within the policy framework agreed for the review and sufficient financing from partners remain key to regaining macroeconomic stability, amid reports that the government’s action plan would wither in the face of rising political noise.
“We take note of recent developments, and while we do not comment on domestic politics, we do hope that a peaceful way forward is found,” IMF’s Resident Representative for Pakistan Esther Perez Ruiz was quoted as saying in Business Recorder.
