IMF Will Only Help Pakistan If it Passes Rs. 300 Billion Mini-Budget

The International Monetary Fund (IMF) has reportedly linked a team visit to Islamabad with the promulgation of mini-budget worth billions.

Sources told ProPakistani that the Pakistani team and IMF officials held virtual negotiations on the second day. The Finance Ministry officials have shared a draft of a mini-budget worth Rs. 200-300 billion with the IMF.

Pakistani authorities have presented a comprehensive plan on proposed tax measures for the rest of the current fiscal year.

This includes the collection of Rs. 100 billion through introducing the Flood Levy during the remaining period of the current fiscal year. Similarly, the government will likely impose additional duties on several luxury goods besides withdrawing tax exemptions granted on goods worth Rs. 70 billion.

It has not only been proposed to impose a ‘flood levy’ on banking transactions of non-filers but to impose a ‘withholding tax’ on bank transactions exceeding Rs. 50,000 per day However, sources added, the proposed tax will not be applicable to individuals included in the Active Taxpayers List.

The government has also estimated Rs. 50 billion from withholding tax on non-filers. The sources said that the Pakistani authorities have also shared a plan to introduce sales tax on and full petroleum levy on petroleum products under the agreed plan in June 2022. Sources said these tax measures will be taken after the formal approval of Prime Minister Shehbaz Sharif.

Sources said that the IMF will send its team to Pakistani to resume talks after the promulgation of the mini-budget via ordinance.