ISLAMABAD: Conditions have been finalized between the government’s economic managers and the International Monetary Fund (IMF) for loan worth $5.3 billion during the second round of talks.
During the second round of IMF talks, the Fund accepted Pakistan’s request that it will not level any new tax under the new program. The fresh talks for the acquisition of $5.3 billion will take place again today with Federal Finance Minister Ishaq Dar to lead Pakistan’s side and Frank Jeffery to head the IMF team.
Dar, capitulating to the IMF pre-condition, expressed willingness to abolish the subsidy on power tariffs differential subsidy; however, the subsidy will be continued for power consumers who burn 300 units of electricity or less.
Pakistan has pledged to take up the tax net to 12 percent of the GDP. It should be mentioned here that this tax to GDP ratio currently stands at 9 percent.