The International Monetary Fund (IMF) is close to reaching an agreement with Pakistan on the first review of its $3 billion loan program, the IMF Managing Director of the IMF Kristalina Georgieva said on Wednesday.
The IMF chief praised the Pakistani authorities for sticking to the program despite the political and economic challenges. She also urged them to improve their tax collection to sustain the country’s development.
“I expect an agreement on the review to come within this week,” said Georgieva during an interview with Bloomberg TV.
The IMF mission, led by Nathan Porter, is currently in Pakistan to conduct the review of the Stand-By-Arrangement (SBA) that was approved in July to help the country avoid a sovereign debt default.
Pakistan has received $1.2 billion as the first tranche of the loan and is expected to get another $450 million after the completion of the review.
Georgieva said that Pakistan’s tax-to-GDP ratio, which is around 12%, needs to increase to at least 15% to generate enough revenues for the government.
More tax on retail, property and agriculture sectors
Earlier, Profit reported that the IMF has asked the Federal Board of Revenue (FBR) to impose additional taxes on the retail, real estate, and agricultural sectors.
The IMF has particularly suggested stricter enforcement of real estate tax. In the case of a shortfall in tax revenue, a fixed tax may be imposed on retailers during the ongoing financial year.
The lender has recommended that the tax regulator may exercise its powers to levy tax on retailers after December, sources added.
The IMF was briefed that consultation with provinces is mandatory for imposing taxes on the agricultural sector.
Meanwhile, FBR submitted a report to the IMF on potential revenue by the end of the current financial year. The IMF was also briefed about the Tax Policy and Management Task Force under the purview of the tax regulator.
As per sources the IMF also sought an implementation report on Track and Trace. It is pertinent to note that talks with the IMF started on November 2, 2023 with both sides sharing critical data for fast-tracking the ongoing review.
If the lender is satisfied with Pakistan’s performance during the review, a second tranche of $700 million is expected to be disbursed.
The successful outcome of the review will undoubtedly have far-reaching implications for the country’s economic stability and its ability to secure continued financial support from the lender of last resort.
ARE YOU A VICTIM OF CRYPTO SCAMS AND WANT TO GET BACK YOUR STOLEN CRYPTOS!!
Am here to testify the handwork of A Great Verified Hacker ( Mr Morris Gray )Who helped me recover back my lost funds from the hands of scammers who Ripped me off my money and made me helpless, I could not afford to pay my bills after the whole incident, But a friend of mine helped me out by given me the contact info of trusted Recovery Expert, his email: Morris gray 830 @ gmail . com contact him or chat him up on (+1- /607-69 )8-0239 ) and he will help you recover your lost funds If you have been a victim of any binary/ cryptocurrency or online scam, Mobile spy, Mobile Hack contact this Trusted and Verified hacker, He is highly recommendable and was efficient in getting my lost funds back, 11btc of my lost funds was refunded back with his help, He is the Best in Hacking jobs, contact him ( MORRIS GRAY 830 AT) GMAIL (DOT) COM…..!!!