The International Monetary Fund (IMF) has demanded Pakistan to exclude provincial development projects from the federal development budget.
According to sources, the international money lender has urged the federal government to cease funding matters devolved to provinces under the 18th Constitutional Amendment.
Sources revealed that the IMF’s directive has compelled the federal government to remove 168 provincial projects from the upcoming federal budget.
Sources further said that these 168 provincial projects, currently part of the federal development budget, have been progressing slowly. The total cost of these projects is estimated at PKR 1,100 billion, with the federal government having already spent PKR 300 billion. The IMF has prohibited further expenditure of PKR 800 billion on these projects, sources added.
As a result, the 168 projects of provincial nature will now need to be completed using provincial development budgets, shifting the financial responsibility to the provinces, sources confirmed.
