Pakistan and the International Monetary Fund (IMF) will begin discussing IMF loan, the aid package for Islamabad from April 29.
The IMF mission, headed by Ernesto Ramirez Rigo, will reach Pakistan on April 29 and will be in the country till May 7. The mission will also visit various institutions during their time in the country.
Govt to keep details of $3.7b loan under wraps
Sources say IMF is asking Pakistan to increase the country’s Gross Domestic Product (GDP) by 13.2 per cent, while the government has assured an increase by 12.7 per cent.
During negotiations with the IMF, there is also expected to be detailed discussion on the revenue framework. The recommendation to impose Rs729 billion tax in the budget is under consideration.
Sources added that a discussion over recommendations and budget strategy papers for the federal budget will also be held with the IMF review mission. Taxes equivalent to 1.4% of the GDP are likely to be imposed in the next budget. Relief in taxes for the import and manufacturing sector will also be granted.
There are recommendations to impose Rs634 billion for inland revenue, Rs95 billion in lieu of customers duty, Rs334 billion in lieu of income tax, Rs150 billion in lieu of sales tax and Rs150 billion in lieu of Federal Excise Duty in the budget.
‘Agreement in principle’ reached with IMF over bailout package: minister
Sources told that the review mission will be informed about the progress of increasing the rate of electricity, the value of rupee, tax revenues on mobile phones, additional revenue, the amnesty scheme and the terms of loan adjustment. However, the biggest challenge will be to inform the IMF about the loans taken from China.