ISLAMABAD – Cash-strapped Pakistan and the International Monetary Fund(IMF) are holding policy-level talks on the budget deficit, externalfinancing, and other key issues, as the global lender keeps eye onuntargeted subsidies.
IMF asked Pakistani officials to collect additional taxes to improve thetax-GDP ratio, linking the revival of the stalled program with policyreforms.
Reports in the media claimed that expenditures will be cut by Rs600 billionto limit the budget deficit. The development budget will be slashed byone-third. Earlier, the Washington-based lender and Pakistani governmentmulled views on technical talks.
The country of over 220 million is struggling to get the much-neededtranche of more than $1 billion as its exchange reserves plunged tocritical levels, not enough to cover three weeks for imports.
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As the government is trying its best to secure funding, the Human RightsWatch warned that stringent measures could worsen the social and economicplights of already distressed people.
The commission’s Asia director said millions have been pushed into povertyand denied their basic rights, urging the Sharif-led government and IMF toresolve the crisis without hurting low-income people.
