IMF Wants Pakistan to Halt Funding of 168 Provincial Projects Worth Rs. 1.1 Trillion

The International Monetary Fund (IMF) has demanded that Pakistan exclude 168 provincial-level development projects from the upcoming federal budget. The projects are worth Rs. 1,100 billion and were being funded by the federal government despite being the responsibility of the provinces. The IMF has explicitly instructed Islamabad to cease financing projects that fall under provincial jurisdiction. The federal government has already spent Rs. 300 billion on these initiatives, but the IMF has now barred the disbursement of the remaining Rs. 800 billion. The demand comes amid Pakistan’s continued engagement with the IMF. Finance Minister Muhammad Aurangzeb, during his meeting with IMF Managing Director Kristalina Georgieva in Washington D.C., reiterated the government’s commitment to economic reforms. He thanked the IMF for finalizing the Staff-Level Agreement under the Extended Fund Facility (EFF) and approving a new program under the Resilience and Sustainability Facility (RSF).