ISLAMABAD: A delegation of the International Monetary Fund (IMF) held a meeting on Wednesday and mutually decided not to introduce a mini-budget.
According to sources, the talks agreed that there will be no increase or reduction in tax target until June this year. Finance Ministry sources said that Pakistan will make every effort to achieve the tax target. It also said that non-tax revenue will be widened to increase income.
In addition, the roadmap of privatization will be ensured while non-tax revenue will be increased by Rs400 billion. In the negotiations with the IMF, it was agreed that the sales tax rate would not increase to 18% and will remain at 17%.
Finance Ministry said that Pakistan has prepared a roadmap to reduce the damages and losses while achieving most of the IMF targets. The IMF is satisfied with the financial and current account deficit. The two sides will issue separate declarations of 10-day talks.
IMF expresses reservations on missing targets
A delegation of the International Monetary Fund (IMF) held a meeting with Senate and National Assembly’s Standing Committee on Finance to discuss the economic situation of the country.
According to sources, the global body called on a joint meeting of the NA and Senate’s Standing Committee and discussed five Sustainable Development Goals (SDGs), including health, education water, and sanitation, etc. The financial institution expressed reservations over not meeting the targets under the agreement.
The IMF team emphasized on improving the economy and business environment of Pakistan and said that necessary measures are needed to increase exports while urging for the new and small-scale exporters.
After the meeting, Chairman Standing Committee on Finance Faizullah Kamoka expressed hope to receive the next tranche from the IMF soon. He said that achieving the tax targets look difficult although.