Govt to impose taxes worth Rs170 billion through mini budget: Ishaq Dar
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).
Pakistan and a visiting IMF delegation held talks for ten days on Thursday but were unable to reach a staff-level agreement. The two sides agreed to take action and take steps in advance.
The finance secretary said that Pakistan and the IMF still need to talk about some things. From Washington, a decision on those points will be made.
Dar stated that the final round of negotiations with the IMF that took place on Thursday was successful while addressing the media in Islamabad on Friday.
Dar claims that the agreement with the IMF was made by Pakistan Tehreek-e-Insaf (PTI)’s previous administration, and the current coalition is exerting considerable effort to fulfill the terms of the agreement.
The minister added that the power, petroleum, and Federal Board of Revenue (FBR) sectors discussed their road maps and came to an agreement at the IMF meeting.
The minister requested the Memorandum of Economic and Financial Policy (MEFP) from the IMF, which they received on Friday morning, and stated that everything had been mutually decided during the meeting.
He added that because the government and economic team are working to make the deal with the IMF official, a virtual meeting is scheduled for Monday to move forward.
The finance minister announced during a press conference that energy sector reforms and fiscal taxes totaling Rs170 billion would be implemented. However, he added, some of the reforms that the IMF suggests are in Pakistan’s favor.
He emphasized that the government is focusing on cutting subsidies that are not going to the right people.
The finance minister also mentioned that the petroleum development levy’s commitment has been met, with a limit of Rs50 for gasoline and Rs40 for diesel and an adjustment of Rs5 for the remaining Rs10. However, the government has decided to increase Benazir Income Support from 360 billion to 400 billion.
In addition, there will be no sales tax on gasoline; however, the GST is included in the 170 billion in taxes.
