News
Wednesday, June 30, 2010
Pakistan moving in right direction: IMF
* Strauss-Kahn says IMF has ‘questions’ about the tax and energy prices
WASHINGTON: The head of the International Monetary Fund (IMF) on Monday praised Pakistan’s commitment to an $11.3 billion rescue package, despite a delay in setting up a nationwide tax.
IMF Managing Director Dominique Strauss-Kahn said while Pakistan could not be considered a “normal country” in light of its wave of violence, the government has taken a “good step forward” on economic reforms.
“There is a lot of concern but no real problem. I think they are going ahead rightly,” Strauss-Kahn said in a group interview.
The Washington-based international lender approved the latest $1.13 billion dollars of the package in May and allowed two waivers on conditions, including giving the government the right to overrun the budget deficit.
As part of the IMF bailout, the government agreed to impose a nationwide value-added tax to bolster national coffers and drum up badly needed funding to fight poverty. But leaders are squabbling over how to set up the tax. Some citizens have voiced fear that the delay could lead to a cut-off in IMF support.
Questions: Strauss-Kahn acknowledged the IMF had “questions” about the tax and energy prices, but added, “I must say that a lot already has been delivered by the government.” Another concern, Strauss-Kahn said, was to ensure that donor nations follow through with pledges. afp
Courtesy www.dailytimes.com.pk