The federal minister Khurram Dastgir while talking to the public in a press share update information about the deal with IMF is near to close. The dialogues between IMF and the government are near to end. The federal minister said that Pakistan was on verge of striking a deal with the lenders as both parties had reached a consensus on all issues.
Pakistan was only leftover with $350 billion; The deal was necessary to done with IMF else we were near to default. Making deal with IMF saved Pakistan from default. Pakistan is looking to have $1.1 billion to save from defaulting. The IMF team is in Pakistan for the last few days talking with Pakistan authorities.
The IMF team has imposed strict conditions on various fields in Pakistan. The public can’t bear the heavy imposition of tax so to overcome the government employees has to show their owned property and impose more tax on the public. The IMF team has not demanded to incise in the budget for defense, but they have asked to divide the supply of electricity to full fill the deprivation. IMF has asked to cut down those lines which provide loss of electricity in northern, southern, and western areas of Pakistan.
IMF has said to increase taxes to enhance revenue and reduce losses. The international powers were not willing to lenience with the government since US forces left Afghanistan. Miftah Ismail said Pakistan has to go through critical times for some time but still has time to survive. “Things are tough for a while but we can get enough loans for now so that we get some room,” Ismail replied to a source on twitter. Miftah also said Pakistan has lost its credibility level from international authorities which will affect Pakistan in terms of financial support.
Pakistan has faced a primary deficit gap of 0.9% of GDP which is equivalent to Rs800 to 850 billion because of less tax and increased expenditure. The Washington-based lender assessed that the federal board revenue FBR might face a shortfall of RS130 billion in achieving the desired tax collection target of RS7,470 billion. The government and IMF might agree to terminate the decreased electricity tariff for the export-oriented sector and link it with export proceeds.
