ISLAMABAD: Pakistan and International Monetary Fund (IMF) have concludedpolicy dialogues where both sides agreed on continuing with unchanged taxtargets which bars increase in taxes till June 2020, citing sources.
The policy dialogues were held between IMF’s mission chief and Pakistaniofficials headed by Adviser to Prime Minister on Finance Abdul HafeezShaikh.
The dialogues were also attended by the representatives of the financeministry, Federal Board of Revenue (FBR), privatisation commission, energy,National Electric Power Regulatory Authority (NEPRA), Oil and GasRegulatory Authority (OGRA) and others.
Sources said that the federal government will not bring mini-budget and nohike will be made in term of taxes till June 2020. Both sides have alsoheld discussion over the Islamabad’s demand to reduce targets of taxrevenues for FBR as IMF had expressed dissatisfaction over the board’sperformance.
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Sources added that IMF and Pakistani officials have agreed to maintain theprevious tax targets given to FBR and decided to increase non-tax revenueup to Rs400 billion for achieving it. It is also decided to bring out acomprehensive mechanism for making an increase in electricity and gasprices.
IMF officials urged for a complete end on subsidy to the power sector inthe dialogues and asked the government to push the concerned institutionsfor focusing on reducing losses and recovery of its dues.
