Letter of Intent from IMF ‘anytime soon’

Letter of Intent from IMF ‘anytime soon’

Image showing the exterior of the International Monetary Fund’s (IMF) building

Islamabad: An agreement between Pakistan and the International Monetary Fund (IMF) to release two tranches of $1.17 billion under a stalled credit facility is nearing final stages. Officials announced on Wednesday.

A senior Treasury official said the IMF would likely send a letter of consent at any time “as soon as it becomes necessary for IMF mission leaders to rush to Australia for personal engagement.” “Within the next 24 hours he may receive the LoI, which will then be co-signed by Treasury Secretary Miftah Ismail and his SBP Governor.” reached an agreement.

The employee-level agreement will be reviewed by the fund’s board of directors at its August 24 meeting. The Board will also consider adding $1 billion to the $6 billion program agreed in 2019. The program plummeted under pressure from retailers to waive fixed taxes that were supposed to be collected through utility bills.

“A mini-budget is being planned as the government has decided to issue an ordinance to take additional tax measures to put his 18 billion rupees into the national coffers,” the official said.

Various sectors are considering introducing additional taxes to satisfy his IMF, as the government may impose higher taxes on tobacco, tobacco leaves, fertilizers, etc. Tax rates on tobacco and tobacco leaf processing may be increased by executive order.

“The government will, in principle, collect an additional Rs. We have decided to collect an additional Rs 60 crore by imposing the tax will be increased in an adjustable mode,” another official said. It remains to be seen how the government will introduce changes to his Finance Act 2022 through an executive order bringing
retailers her Rs 27 billion.

Finance Minister Miftah also confirmed the government’s plans to raise additional taxes. “Various proposals are being considered and the prime minister will make a decision soon,” he told News.

However, sources said the government would not allow Pakistani diplomats to benefit from the proposed restrictions. may restore tax exemptions on the benefits and privileges of “It will require a cost of Rs 1.5 crore in terms of revenue,” said the source.

An independent economist estimates that the government will exempt retailers from taxes of Rs 310 crore and he will give PSO (Pakistan State Oil) an additional subsidy of Rs 300 crore to avoid payment defaults. There are significant gaps on the tax front, he said.

Credit/Source : THENEWSPK

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