Staff Report
ISLAMABAD: Pakistan has formally assured the major financial agency, the International Monetary Fund (IMF), to comply with its conditions for reviving the stalled loan program.
According to sources, the government has provided a roadmap for the revival of the IMF bailout package. Moreover, proposals regarding increasing tax revenue have also been handed over to IMF officials.
A mini-budget of around 200 billion rupees has been suggested to increase tax revenues. “Preparations are in the offing for an ordinance to introduce the mini-budget,” sources said.
“The mini-budget will be enforced from February 1,” sources at the Finance Ministry said.
According to the ministry sources, Flood Levy will be enforced over imports in the mini-budget. “Flood Levy will also be imposed on imported raw material and furnished items,” sources said.
Moreover, a three percent flood levy will be imposed on luxury items. A one percent Flood Levy will be enforced on the imported goods presently having zero-customs duty.
Ministry sources said Flood Levy would also be imposed over the foreign exchange profit of banks. “The government has also sent a roadmap to the IMF to lower circular debt in the energy sector,” sources said.
Pakistan needs bailout package to overcome economic crisis
The government is trying to convince IMF to send its team to Pakistan within the next two weeks. “The financial agency’s team could arrive within the next two weeks,” ministry sources said.
“Pakistan is also striving for online talks with the IMF,” according to sources.
IMF had shared lists of prerequisite actions with Pakistan and told the authorities that Islamabad would have to move towards implementing all conditions for reviving the stalled Fund program.
IMF has asked Pakistan to ensure all required measures that could pave the way for striking a staff-level deal and releasing a $1 billion tranche.
The ministry sources say the IMF has requested a roadmap from Pakistan to collect Rs855 via petroleum levy until June 30, 2023. The Pakistani authorities have to jack up the levy on diesel by Rs15 per litre and drag it to Rs50 per litre.
