Pakistani Banks get a big shock from the government
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The government has reportedly reached an agreement with the International Monetary Fund (IMF) to implement a windfall tax, potentially reaching up to 40%, on profits generated by banks.
This information surfaced on Wednesday following the conclusion of policy-level discussions between the government and an IMF delegation, which wrapped up on Tuesday.
According to reports, the IMF team is scheduled to depart from Pakistan on Thursday. Despite their departure, the government remains optimistic, anticipating positive developments regarding the release of the second tranche.
In pursuit of fiscal objectives, the government aims to gather around Rs55 billion through the windfall tax. This tax is intended to target profits from the fiscal years 2021 and 2022. Notably, the collection of this tax is expected to take place in the upcoming month.
