The Khyber Pakhtunkhwa Finance Minister Taimur Khan Jhagra has refused to implement the much-needed agreement with the International Monetary Fund (IMF), a move which will certainly jeopardize the bailout package aimed at to uplift Pakistan’s sinking economy.
In this regard, journalist and YouTuber Asad Ali Toor took to Twitter on Friday and wrote that Taimur Khan Jhagra, who is the finance minister in Pakistan Tehreek-e-Insaf (PTI)-led Khyber Pakhtunkhwa government, has written a letter to the IMF, apprising the financial body that they would not implement the agreement which would pave the way for releasing the stalled amount of US$ 1.2 billion to Pakistan.
Asad Toor also told that the provincial finance minister has also shared the letter forwarded to the IMF with the federal government.
#BREAKING: To jeopardise the bail out package and detail issuance of last instalment of 1.2 billion dollars, KP finance minister @Jhagra refused to implement #IMF agreement in a letter to the fund and also shared a copy of the letter with federal Govt.
— Asad Ali Toor (@AsadAToor) August 26, 2022
In July 2022, Pakistan and IMF reached the staff-level agreement to complete the combined 7th and 8th reviews of Extended Fund Facility (EFF).
Earlier in the day, while addressing a Press Conference in Islamabad, the Finance Minister Miftah Ismail told that Pakistan had fulfilled all the requirements of the IMF and the Country would receive the next tranche after its Board Meeting on August 29.
It’s worth noting that Jhagra had said in July 2022 that the KPK government had signed the Memorandum of Understanding (MoU) in connection with the IMF agreement under the shared fiscal responsibilities of the federal and provincial governments.
GoKP has signed the Fiscal Responsibility MoU with conditionalities, despite our strongest political reservations. Contrast with PMLN Punjab govt buying votes through a Rs 148 bln unbudgeted subsidy the rest of Pakistan would finance.
— Taimur Khan Jhagra (@Jhagra) July 7, 2022
Though, he had himself warned in May 2022 that the Khyber Pakhtunkhwa government wouldn’t play its part in fulfilling any of the promises made by the federal government in negotiations with the IMF.
Jhagra said that the Khyber Pakhtunkhwa province would not be bound to comply by any commitment between the federal government and the IMF regarding the province.