KP CM Warns of Withholding IMF Support if PTI Founder Denied Access; Experts Highlight Crucial Role of Provinces in IMF Deal

Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur has issued a stern warning to the federal government, stating that if officials from his province are not allowed to meet PTI founder Imran Khan, KP will withdraw its support for the International Monetary Fund (IMF) programme.

Speaking on the matter, economic analysts emphasized that provincial cooperation is critical for the success of any IMF programme in Pakistan. Senior economist and journalist Mehtab Haider explained that without the provinces’ participation, the IMF programme cannot be designed or implemented effectively.

“Provinces are essential stakeholders. They are responsible for generating revenue surpluses and collecting agricultural income taxes, which are then transferred to the federal government,” Haider said. He noted that a National Finance Agreement signed between the federal government and all four provinces clearly outlines their obligations to enhance revenue collection and contribute to the overall fiscal strategy.

For example, while the federal government collects General Sales Tax (GST) on goods, provinces collect GST on services. Additionally, social protection projects are to be transferred from the federal to provincial level as part of the IMF conditions—another indicator of the provinces’ integral role.

Veteran journalist Shoaib Nizami further added that provinces are expected to meet various targets as part of the IMF deal. These include implementing income tax on agricultural earnings, imposing super taxes on provincial revenues, and maintaining budget surpluses that help the federal government reduce its deficit.

“If provinces do not provide budget surpluses to the federation, the IMF’s budget deficit reduction targets cannot be achieved. This would directly impact the federal government’s fiscal goals,” Nizami explained.

Both experts concluded that the IMF programme’s continuation is impossible without full cooperation from provincial governments. Gandapur’s political warning, therefore, could have serious implications for Pakistan’s ongoing engagement with the IMF.