Finance Minister Miftah Ismail says that the IMF programme will start up again in a day or two.
ISLAMABAD: Pakistan’s Finance Minister, Miftah Ismail, said on Tuesday that the International Monetary Fund’s bailout will start up again in a day or two. He also said that the IMF has no problems with the pay raises for federal workers or the fact that people who make less than Rs 1.2 million a year won’t have to pay taxes.
The finance minister said at the parliament house that people will get help and that rich people will have to pay more taxes. “PM Shehbaz says he doesn’t like the tax increases, but I always say that if taxes aren’t raised, how will the government get money?
The finance minister said that 80 kg of gold is brought into the country illegally every year.
Pakistan wants the IMF to give it access to $3 billion. That amount would add to the country’s foreign exchange reserves, which cover less than two months’ worth of imports at $10,2 billion. This year, the government is likely to have a trade deficit of $45 billion.
Investors are getting nervous. Pakistan could go bankrupt for the second time in its history if it doesn’t get help from the International Monetary Fund. Since Wednesday’s talks with the IMF in Doha didn’t go anywhere, officials admit that getting a loan from the multilateral lender might mean making trade-offs, such as the politically difficult decision to raise fuel prices.
increasing prices. Pakistan’s economy has been struggling for months because of disagreements over fuel prices and a tense political climate. This makes it more likely that one of the most populous countries in the world could soon go the way of Sri Lanka.
