ISLAMABAD – The International Monetary FundIMF() and the government in Pakistan at a stalemate over Rs 900 billion fiscal gapReporting on the major obstacle in striking an agreement at staff level was Geo News.
IMF It has achieved a greater size gap Around Rs 900 billionThis is equivalent to 1% of the Gross Domestic Product (GDP).
IMF Geo News reports that is seeking to increase the GST rate from 17 percent to 18 percent, or to impose 17 percent GST for Petroleum, Oil, and Lubricants Products (POL).
Pakistan, however, is still contesting the elections fiscal gap In achieving the primary deficit. The authorities of Pakistan have asked IMF For incorporating a flow for reduction under the revised Circular debt Management Plan (CDMP), and reducing the amount of additional subsidy required Rs 605 billion The earlier goal of Rs 687 billion.
The following are the recommendations: fiscal gap Standed in the range Rs 400 Rs 450 billion.
Top officials also completely rule out the possibility. IMF Imran Khan stated that the Chairman of Pakistan Tehreek-e-Insaf, Imran Khan (PTI), signed the Fund’s chairmanship and agreed to relaunch the Fund program. IMF review mission, reported Geo News.
“Differences still persist over ascertaining the exact fiscal gap between Pakistan and the visiting IMF review mission during the technical levels talks. Once it’s finalized with the IMF, then the additional taxation measures will be firmed up, which will be unveiled through the upcoming mini-budget. In view of a lack of reconciliation over the figure of fiscal gap, the technical level talks will continue on Monday and then policy level talks are expected to commence from Tuesday,” Sources spoke to reporters on Saturday and confirmed this information.
They stated that the government was in principle open to accepting the proposal IMF Because such dole-outs were completely incompatible with the lender’s standards, it was decided to eliminate subsidies for electricity and gas tariffs to export-oriented industries.
Geo News reports that the official will make major changes to the Exporters Scheme.
Authorities in Pakistan acknowledged that power sector was a significant stumblingblock on their path to smooth sailing.
Geo News reported that the problem area of the gas sector’s circular debt remained.
Overruns in expenditures will exceed the goal of 4.99 percent of GDP for overall budget deficit. It is possible that this figure could touch 6 to 7 percentage points during the current financial year. fiscal year.
In the meantime, the government is prepared to place a flood levy both on wealthy segments and imports. at The rate of 41% on bank sector windfall profits, increase Federal Excise Duty rate (FED), rate on cigarettes and sugary drinks, raise withholding taxes rates for property transactions, international travel, and other.
The IMF The FBR was expected to face a deficit of Rs 130 billion To achieve the objective of Rs 7,470 billion, reported Geo News.
By the close of talks on February 9, it is likely that the two sides will have reached a staff-level deal. Once that is done, the IMFThe Executive Board is expected to approve the next tranche of funding in March 2023.