Rs 170 billion new taxes on cards by federal government

Rs 170 billion new taxes on cards by federal government

ISLAMABAD - Pakistan government will generate Rs 170 billion extra taxes in FY 2018-19 through electricity tarrif hikes and taxation measures.

Pakistan has assured the IMF of notifying Nepra’s determined tariff of hiking the electricity rates by Rs1.27 per unit soon, taking additional taxation measures to fetch Rs170 billion and placing flexible exchange rate with gradual adjustments of rupee against dollar in order to strike staff level agreement with the Fund for seeking fresh bailout package, The News has learnt.

Pakistan will have to request to the IMF for maximum quota facility of 435 percent equivalent to over $12 billion as Islamabad has to pay back outstanding liabilities of around $6.4 billion over next three years so net financing availability under 36 month facility will be standing between $6 to $7 billion.

Differences still persisted over pace of adjustments on fiscal and monetary fronts even after holding video conference between Pakistan and the IMF on Wednesday night, however, both sides agreed to continue more round of parleys in weeks ahead.

An IMF mission may visit Islamabad after mid of next month in a fresh bid to evolve consensus for agreement on Memorandum of Economic and Financial Policies (MEFP) which will pave the way for signing Letter of Intent (LoI) by Federal Minister for Finance Asad Umar and SBP Governor Tariq Bajwa.