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ISLAMABAD: The International Monetary Fund has raised concerns over the federal government’s disbursement of Rs344 billion in grants to multiple sectors without obtaining approval from the National Assembly, officials revealed on Friday.
According to sources, the IMF raised concerns about the allocation of funds to defence, Independent Power Producers (IPPs), and other segments without parliamentary consent, terming it a violation of the existing agreement between the government and the global lender.
During the ongoing fiscal year, the federal government spent Rs344.66 billion in the form of grants without routing them through the required legislative procedures.
Out of this amount, Rs115 billion was granted to IPPs, Rs30 billion was disbursed to flood-affected individuals in Sindh, and Rs6 billion went to the Federal Board of Revenue (FBR).
Additionally, Rs14 billion was allocated for solarization initiatives, Rs23 billion for anti-terrorism efforts, and Rs2 billion for upgrading technology infrastructure.
The government also released Rs3.7 billion for the Reko Diq mining project, Rs520 million for the Special Investment Facilitation Council (SIFC), and Rs7 billion for schemes backed by parliamentarians.
The IMF raised concerns not only over the lack of parliamentary oversight but also over the fiscal transparency and budget discipline commitments made under the financial support agreement. The issue may impact future loan program evaluations unless corrective actions are taken.
