WEB DESK
Finance Minister Ishaq Dar has announced that the government will impose taxes worth Rs170 billion through a mini-budget as part of their agreement with the International Monetary Fund (IMF).
On Thursday, the 10-day-long negotiations between Pakistan and a visiting IMF delegation ended, and the two sides failed to reach a staff-level agreement. The two sides agreed on taking action and advance measures.
The finance secretary said some points are left to be discussed between Pakistan and the IMF. A decision on those points will be made from Washington.
While addressing the media in Islamabad on Friday, Dar stated that the final round of negotiations with the IMF held on Thursday was successful.
According to Dar, the previous government of Pakistan Tehreek-e-Insaf (PTI) had made the agreement with the IMF, and the ruling coalition is working hard to fulfill its requirements of it.
The minister added that during the IMF meeting, the petroleum, Federal Board of Revenue (FBR), and power sectors discussed their roadmaps and reached a mutual agreement.
The minister said that everything had been mutually decided in the meeting and IMF had asked the government to sign and return the Memorandum of Economic and Financial Policy (MEFP) document sent on Friday morning.
A virtual meeting is scheduled for Monday to move forward because the government and economic team are working to finalize the deal with the IMF, he added.
During a presser, the finance minister declared that the implementation of fiscal taxes worth Rs170 billion and reforms in the energy sector will take place.
Some of the reforms, however, suggested by the IMF are in Pakistan’s favor, he added.
He emphasized that the government is directing its attention toward reducing subsidies that are not targeted accurately.
The finance minister also mentioned that the commitment to the petroleum development levy has been fulfilled, with the limit of Rs50 on petrol and Rs40 on diesel while the remaining Rs10 will be adjusted by making Rs5.
However, in terms of Benazir Income Support, the government has decided to increase the amount from Rs360 billion to Rs400 billion.
Moreover, there will be no sales tax on petrol, as far as GST is concerned, it is included in the taxes of 170 billion.
