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IMF to monitor govt's compliance on expenditure side

TAHIR DHINDSA

ISLAMABAD: The International Monetary Fund (IMF) in future will monitor the Government of Pakistan's compliance on expenditures side, it was learnt.

Sources close to the IMF told Business Recorder that the four-member technical mission, which is already in Pakistan, would help establish a monitoring and reporting cell to be housed in the Ministry of Finance for keeping a close watch on expenditure side.

The next IMF programme, which is likely to replace $ 1.6 billion Enhanced Structural Adjustment Facility (ESAF), will lay a strong emphasis on social side of development. Therefore, keeping a close watch on expenditure side is important.

When development is carried on in social sector, the implementation sites could be far away and, therefore, monitoring at regular intervals is necessary, sources said.

The four-member technical mission, headed by Bill Allan, has already done some work on establishing expenditure data-base, which would help prompt regular check on disbursement figures.

Sources said there are regular information on revenue collection, which is discussed in print and electronic media, and there is a debate on it, but there is no such data-base relating to the expenditure. The expenditure figures are only to be discussed at the next budget.

The visiting mission is closely looking at the fiscal side of economy, they said. In the light of the findings, a long- and a short-term strategy will be prepared and the government will adopt measures in this regard. "the weakness has always been on implementation," the sources said," and the monitoring and reporting system will improve it."

The mission after the completion of their objectives will report to the IMF management in Washington. "This may be the starting point of discussion on the next programme," they said.

The next programme which will focus on poverty issues will then be discussed in the board meeting.

The government sources have said that almost all preparations have been completed for a discussion on the next programme, which the IMF is likely to approve.