Pakistan and IMF take important decisions over policy dialogues

Pakistan and IMF take important decisions over policy dialogues

ISLAMABAD: Pakistan and International Monetary Fund (IMF) have concluded policy dialogues where both sides agreed on continuing with unchanged tax targets which bars increase in taxes till June 2020, citing sources.

The policy dialogues were held between IMF’s mission chief and Pakistani officials headed by Adviser to Prime Minister on Finance Abdul Hafeez Shaikh.

The dialogues were also attended by the representatives of the finance ministry, Federal Board of Revenue (FBR), privatisation commission, energy, National Electric Power Regulatory Authority (NEPRA), Oil and Gas Regulatory Authority (OGRA) and others.

Sources said that the federal government will not bring mini-budget and no hike will be made in term of taxes till June 2020. Both sides have also held discussion over the Islamabad’s demand to reduce targets of tax revenues for FBR as IMF had expressed dissatisfaction over the board’s performance.

Sources added that IMF and Pakistani officials have agreed to maintain the previous tax targets given to FBR and decided to increase non-tax revenue up to Rs400 billion for achieving it. It is also decided to bring out a comprehensive mechanism for making an increase in electricity and gas prices.

IMF officials urged for a complete end on subsidy to the power sector in the dialogues and asked the government to push the concerned institutions for focusing on reducing losses and recovery of its dues.