———- Conditions Pakistan to monitor industrial sector production
———- Agrees to govt’s proposal for providing electricity relief
———- Calls for removal of tax exemptions on electric vehicles & Solar panels
———- Expresses satisfaction on country’s economic progress
By Asghar Ali Mubarak
ISLAMABAD: No mini-budget will be introduced before the end of June as the International Monetary Fund (IMF) has expressed satisfaction with Pakistan’s economic measures, Express News reported on Friday.
The final day of negotiations between Pakistan and the IMF will conclude today, following technical sessions and policy-level discussions.
A meeting between the IMF delegation and Finance Minister Ishaq Dar is scheduled today, with an iftar dinner hosted by the minister in honor of the delegation.
Once the talks are finalised, the IMF team will prepare an assessment report, which will be submitted to the Executive Board for a decision on the release of the next $1 billion tranche of financial assistance to Pakistan.
The agenda for today includes reviewing Pakistan’s budgetary targets, the performance of the current fiscal year, and discussing the tax shortfall as well as new tax goals. Both sides are expected to finalize proposals before the conclusion of the negotiations.
Pakistan has engaged in extensive discussions with the IMF, fulfilling most of the institution’s targets and providing all necessary economic data. However, the IMF has called for the removal of tax exemp-tions for solar panels and electric vehicles, which it views as luxury items benefiting the wealthy. The IMF also pushed for the elimination of tax breaks on electric vehicle parts and stricter enforce-ment of fiscal discipline.
Once the negotiations are concluded, the IMF delegation is set to return, with the final agreements expected to shape the next phase of Pakistan’s economic support from the global lender.
Pakistan on Thursday urged the International Monetary Fund (IMF) to allow it to cut the tax rates at par with the regional countries to stop the increasing outward flight of money, as the global lender did not see any major progress in tapping true incomes of retailers and real estate dealers.
On the second-last day of the talks, the IMF also briefed the foreign diplomats on the outcomes of the first review. The IMF largely showed satisfaction with the implementation of the programme except in the areas of property, real estate and the privatisation, according to the people privy to the meeting.
The global lender backed a steady increase in the economic growth, saying that any swift shift to high-er growth rate might cause concerns regarding higher fiscal and current account deficits.
