The International Monetary Fund (IMF) has voiced serious concerns over the federal government’s decision to issue supplementary grants totaling a whopping Rs344.64 billion — without first securing approval from the National Assembly.
The IMF considers this move a direct violation of Pakistan’s ongoing agreement under the Extended Fund Facility (EFF), sparking fresh questions about fiscal transparency and accountability.
According to official documents, the government has already distributed these funds across several key sectors — including energy, defense, and flood relief — and is now seeking post-facto approval from the legislature. However, the IMF is not taking this lightly. The Fund has made it clear that spending on such a massive scale, without prior legislative backing, contradicts the agreed fiscal discipline measures central to the IMF loan conditions.
The largest chunk of the supplementary budget — Rs115 billion — went to Independent Power Producers (IPPs), a sector that continues to place a heavy burden on Pakistan’s economy. The IMF has repeatedly flagged concerns over inefficiencies in the power sector and their impact on national finances.
Defense spending also saw a significant allocation, with Rs59 billion directed toward military needs. Meanwhile, Rs30 billion was set aside to support flood relief efforts in Sindh, a region still recovering from last year’s devastating monsoon season. In addition, Rs23 billion was given to strengthen the Pakistan Army’s anti-terrorism operations.
To support agriculture, Rs14 billion was allocated to the solarisation of tube wells, aiming to lower energy costs for farmers. Technology upgrades got a Rs2 billion boost, while the massive Reko Diq mining project received Rs3.7 billion in new funding.
Other notable allocations include Rs7 billion for parliamentarian-backed development schemes and Rs6 billion for the Federal Board of Revenue (FBR). The Special Investment Facilitation Council (SIFC) was also granted Rs520 million.
Various federal institutions — such as the Supreme Court, Islamabad High Court, and the Ministry of Interior — also received part of the supplementary amount, contributing to the overall total.
The IMF’s reaction is a clear signal that Pakistan must tread carefully and uphold its fiscal discipline measures if it wants to maintain trust and continue receiving much-needed international financial support. With post-facto approval still pending, this development could lead to intensified scrutiny from both domestic and international stakeholders.
