By Ariba Shahid
(Reuters) - The International Monetary Fund (IMF) on Thursday expressed dissatisfaction with Pakistan&rsquo;s recently presented&nbsp;budget, a blow for the cash-strapped country which has only two weeks left until its bailout programme expires.
Pakistan has barely enough currency reserves to cover one month's imports. It had hoped to have $1.1 billion of the funds released in November - but the&nbsp;IMF&nbsp;has insisted on a number of conditions before it makes any more disbursements.
With time for only one last&nbsp;IMF&nbsp;board review before the end of the $6.5 billion Extended Fund Facility (EFF), Pakistan was expected to present a&nbsp;budget&nbsp;in line with programme objectives, restore the proper functioning of the FX market, and close the $6 billion gap ahead of the board review.
"Staff remains engaged to discuss policies to maintain stability. However, the draft FY24&nbsp;Budget&nbsp;misses an&nbsp;opportunity&nbsp;to broaden the tax base in a more progressive way," Esther Perez Ruiz, the&nbsp;IMF's resident representative for Pakistan, said in a text message to Reuters.
She added that the long list of new tax expenditures further reduces the fairness of the tax system and undercuts the resources needed for vulnerable recipients in the Benazir Income Support Programme.
"The new tax amnesty runs against program&rsquo;s conditionality and governance agenda and creates a damaging precedent," added Perez Ruiz.
She said that measures to address the energy sector&rsquo;s liquidity pressures could be included alongside the broader&nbsp;budget&nbsp;strategy.
Added Perez Ruiz: "The&nbsp;IMF&nbsp;team stands ready to work with the government in refining this&nbsp;Budget&nbsp;ahead of its passage," implying the country still has a chance to unlock its ninth&nbsp;IMF&nbsp;board review prior to the end of the EFF programme.
A Pakistan government spokesman did not immediately respond to a request for comment.
&nbsp;
(Reporting by Bharat Govind Gautam in Bengaluru and Ariba Shahid in Karachi; Editing by Jonathan Oatis and Matthew Lewis)

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