Federal government to impose further harsh economic measures on IMF demand
Shares
The Government of Pakistan has invited International Monetary Fund (IMF) for talks to address all contentious issues, including implementing a market-based exchange rate, as it considered slapping taxes on cash withdrawals and other banking transactions
According to reports, the new planned discussion measures include further increasing the withholding tax rates on the sale and purchase of properties as part of the mini-budget.
Sources said “The finance secretary has requested the IMF to send its mission to Pakistan as early as next week and shown the country’s desire to negotiate on all the disputed issues. The discussions with the IMF would take place in light of the matters discussed on the sidelines of the recent Geneva conference.”
It was expected that the government would at least make a formal announcement about its intention to revive the IMF programme very soon.
During the second meeting chaired by PM Shehbaz Sharif in Islamabad on Thursday with focus on economic issues, the Power Division and Federal Board of Revenue (FBR) presented revised plans to the premier for taking measures to restore the global lender’s programme.
It was decided that the government would show flexibility but at this stage, the final position would not be shared with the IMF, the sources sadi.
Pakistan’s external sector position has become precarious with only $4.4 billion reserves left in its coffers. There is also a realisation on the part of the government that abandoning the IMF route four months ago was a mistake and now an attempt will be made to revive the programme.
However, this realisation came only after foreign nations refused a bailout to Pakistan without the IMF umbrella. All the international creditors have advised the government to take the IMF path.
