The Government of Pakistan has invited International Monetary Fund (IMF)for talks to address all contentious issues, including implementing amarket-based exchange rate, as it considered slapping taxes on cashwithdrawals and other banking transactions
According to reports, the new planned discussion measures include furtherincreasing the withholding tax rates on the sale and purchase of propertiesas part of the mini-budget.
Sources said “The finance secretary has requested the IMF to send itsmission to Pakistan as early as next week and shown the country’s desire tonegotiate on all the disputed issues. The discussions with the IMF wouldtake place in light of the matters discussed on the sidelines of the recentGeneva conference.”
It was expected that the government would at least make a formalannouncement about its intention to revive the IMF programme very soon.
During the second meeting chaired by PM Shehbaz Sharif in Islamabad onThursday with focus on economic issues, the Power Division and FederalBoard of Revenue (FBR) presented revised plans to the premier for takingmeasures to restore the global lender’s programme.
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It was decided that the government would show flexibility but at thisstage, the final position would not be shared with the IMF, the sourcessadi.
Pakistan’s external sector position has become precarious with only $4.4billion reserves left in its coffers. There is also a realisation on thepart of the government that abandoning the IMF route four months ago was amistake and now an attempt will be made to revive the programme.
However, this realisation came only after foreign nations refused a bailoutto Pakistan without the IMF umbrella. All the international creditors haveadvised the government to take the IMF path.
