Ashish Ranjan
The International Monetary Fund (IMF) has listed “tough conditions” for billions of dollars in aid to cash-strapped Pakistan, its Prime Minister Shehbaz Sharif has said
10 Points you should know about IMF Pakistan conditions:
1.Following a positive ninth review of Pakistan’s economy, the International Monetary Fund (IMF) will contribute more than $1.1 billion. Additionally, this would clear the way for bilateral loans from other countries and institutions in the world. The International Monetary Fund encourages Pakistan to take steps that will raise the amount of money the government takes in.
2.The Pakistani government will receive nine tables from the International Monetary Fund (IMF) pertaining to macroeconomic and fiscal frameworks. Should they reach a consensus by the 9th of February, they will be required to sign a staff-level agreement.
3.Before the International Monetary Fund (IMF) would feel comfortable lending the country money to stabilise its economy, Pakistan will have to make some tough choices in order to earn the organization’s approval of how the country is handling the current financial crisis.
4.According to reports in The News International newspaper citing unnamed sources, the International Monetary Fund anticipates that Pakistan would take action to close the large fiscal shortfall.
5.One idea is to add 20–30 rupees to the tax that is already paid per litre of gasoline. According to the newspaper’s claim, this would result in an increase in price from the current 50 rupees to between 70 and 80 rupees.
6.The imposition of a goods and services tax (GST) at a rate of seventeen percent on petroleum, oil, and lubricant (POL) items is an additional possibility. The newspaper said, citing unnamed sources, that another option would be to increase the value-added tax (GST) rate from 17 to 18 percent by means of a presidential edict.
7.Through the use of a mini-budget, Pakistan may explore increasing the federal excise duty rate on sugary beverages from 13 to 17 percent. Currently, the rate is 13 percent.
8.The Pakistani Federal Board of Revenue has proposed an increase in the excise rate that is placed on cigarettes.
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9.The revenue board has requested information concerning the assets held by highly paid members of the civil service. The Federal Board of Revenue and the banks will be provided with a copy of this information for their records.
10.On Friday, the Central Bank of Pakistan reported that its foreign exchange reserves fell by 16.1 percent to $3.09 billion at the conclusion of the previous fiscal week. This is the lowest level that these reserves have been at for nearly ten years.
