By Anzal Amin
ISLAMABAD: The International Monetary Fund (IMF) has demanded for pension reforms, said well informed sources on Tuesday.
Preparations have been underway for next round of Pakistan’s talks with IMF in the last week of Oc-tober. The lender has demanded implementation on pension reforms, sources at the Ministry of Finance said.
The IMF wants reduction in volume of pension funds by introducing pension reforms, sources said.
“The pension budget has increased by 500% in last 12 hours,” sources at the ministry said. The IMF is demanding separating pensions from budget to move it to the pension fund, in its sug-gestion to the economic managers. “Separation of pensions from budget can cut down the defi-cit,” IMF suggested.
“The IMF also advised to discourage premature retirement and pensioners should be allowed only one pension”. Retired officers from different departments should not be allowed separate pen-sions owing to their duties and this practice of more than one pensions should be ended, IMF said.
Pakistan caretaker government is likely to jack up gas tariff by 100pc on the International Monetary Fund’s (IMF) demand. According to sources knowing the matter, the IMF demanded an increase in gas tariff from up to 100pc before the next economic review to curtail circular debt in the gas sector.
Sources said the shortfall of Rs185 billion will be added to the circular debt of the gas sector if the gas tariff is not increased. The current circular debt of the gas sector is touching Rs2,700 billion.
Earlier, The talks for the second tranche of the International Monetary Fund (IMF) bailout will like-ly to be held in the last week of October, said sources on Saturday. “An online meeting of the Federal Board of Revenue was held with the IMF. The officials have told the IMF that Pakistan will not impose a new tax, ” sources said. “The FBR has been confident to attain the tax recovery target without imposing new tax,” sources said.
Sources said that the global lender has expressed its satisfaction with performance of the FBR. “The IMF will be informed about economic performance of the country in the first week of October”. “Taxation data of the first quarterly of the ongoing fiscal year, July to September, will likely to be shared with the IMF in the next week,” sources said. “A plan of crackdown against tax theft has also been shared with the IMF,” sources added. It is pertinent to mention here that the development budget is likely to be reduced by Rs 150 to Rs 200 billion amid International Monetary Fund (IMF) pressure.
It was disclosed in a meeting of the Federal Minister of Finance Dr. Shamshad Akhtar with the pro-vincial finance ministers.
On the other hand, Pakistan has received $3.52 billion including $3.49bn in loans and $34 million in grants during the first three months of FY-2023-24, confirmed the Economic Affairs Division.
The Economic Affairs Division has released a monthly report regarding the loans and grants re-ceived by Pakistan from other countries in the current financial year so far.
The report said that from July to September 2023, Pakistan received $3.5273 billion from abroad, according to the report. Out of this, $3.49 billion are loans and $34 million grants, showing 58 per cent rise as compared to last year’s $2.234 billion loan.
The report further said that Saudi Arabia gave a loan of $2 billion to Pakistan in the form of time deposits, and China’s National Aero Technology Corporation provided $500 million.
Various international financial institutions extended a loan of $490 million dollars to Pakistan, while $324 million was received from various countries.
This assistance is besides the first tranche of $1.2 billion received from the IMF in the first quarter of the fiscal year.
Pakistan expects to receive more than $17.38 billion in external financial assistance in the current financial year, the report reveals.
Earlier it emerged that Pakistan will hold talks for the second tranche of the International Monetary Fund (IMF) bailout likely in the last week of October.
