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Significant progress between IMF & Pakistan

  • A significant progress has been made during the talks with the International Monetary Fund (IMF) officials last night
  • The IMF mission will finalize the financial targets with the SBP in the next few days
  • It will also share the draft Memorandum of Understanding on Economic and Monetary Policy (FEFP) with Pakistan

ISLAMABAD: Pakistan has made a significant progress during the talks with the International Monetary Fund (IMF) officials regarding the budget for the next fiscal year 2022-23 late at night on Tuesday, reported BOL News.

The sources unveiled that Pakistan’s delegation headed by Finance Minister Miftah Ismail meet the IMF staff via video link.

The details that came to light after the meet hold that in the next budget, it was agreed to increase the tax collection target from Rs 7,005 billion to Rs 7,450 billion and the customs collection target would go up from Rs 950 billion to Rs 1,005 billion.

Not only this, it was also agreed in the meet that the general sales tax (GST) would be increased by Rs 3,008 billion to Rs 3,300 billion. Meanwhile, a target of income tax collection is to be increased by Rs 55 billion.

Whereas, the IMF demanded that sales tax on petroleum products be levied at the rate of 11% from July 1.

The sources further said that the IMF has demanded a levy of Rs 50 per liter on petroleum products and agreed to levy Rs 5 per liter per month on petroleum products.

The IMF mission will finalize the financial targets with the SBP in the next few days while also sharing the draft Memorandum of Understanding on Economic and Monetary Policy (FEFP) with Pakistan during the same time period.

Federal Minister for Finance Miftah Ismail on Tuesday night said that “Pakistan and the IMF locked the budget details and achieved substantial progress on finalising budgetary targets for 2022-23″. Adding that, “Now the MEFP will be shared by the IMF soon.”

Courtesy Bol News

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