ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to levy additional taxes of Rs 600-800 crore in a second round of talks to restore the $7 billion Extended Fund Facility (EFF) that has stalled for several months. News reported on Wednesday, citing sources.
according to the details The Federal Tax Board has held a second round of technical talks with the IMF’s mission, led by Pakistan’s Chief Delegation Nathan Porter, in the ninth review of the $7 billion loan programme.
Pakistan received $6 billion in IMF bailouts in 2019, an additional $1 billion more than last year. But the lender suspended payments in November due to Pakistan’s failure to improve consolidation and economic reforms.
during the meeting The Fund has imposed strict conditions for further measures. This includes an additional levy of approximately Rs 600-800 crore.
A source told ARY News that Pakistan is willing to levy taxes worth Rs 200 crore through. ‘Small budget’ as funds pressure Islamabad to collect more than Rs 600 crore in additional taxes
The lender also urged the government to raise the tax collection to 1 per cent of gross domestic product (GDP). The source quoted the fund urging the government to set a tax collection target for the next fiscal year of 8.3 billion rupees.
Read more: ‘Minimum budget’: government likely to impose more taxes on luxury goods
The source added that the IMF also called for an end to sales tax incentives. It also called for an increase in sales tax on gasoline from 11 percent to 17 percent, the sources said. It added that the fund called for an end to the Rs 110 crore concessions to textile and other industries.
Previously, it was reported that The federal government recognizes the International Monetary Fund (IMF). Working group to increase electricity tariff
According to the source, the government will increase the electricity tariff by Rs 6.79 per unit and will increase it step by step over the next five months.
The Electricity Authority has summarized IMF team about plans to reduce revolving debt by increasing electricity bills and preventing electricity theft and cable outages
The IMF mission has arrived.
It is mentioned herein that the International Monetary Fund (IMF mission) arrived in Islamabad on January 30 to discuss the deadlocked Ninth Review. of the $7 billion Extended Fund Facility (EFF).
The source told ARY News that Pakistan and the Fund will hold technical talks during the first four days, with economic data from various agencies reviewed.
Prime Minister (PM) Shehbaz Sharif said the Coalition wants to get it done. Ninth review without further delay And he told the top IMF executive about Pakistan’s willingness..
“I have told the IMF senior management that Pakistan is willing to complete the pending review and consolidate the conditions,” he added.
