ISLAMABAD Pakistan made significant progress in its talks with the International Monetary Fund (IMF) about the fiscal year 2022–23 budget.
Sources said that Pakistan’s delegation, led by Finance Minister Miftah Ismail, meets with IMF staff via video link.
Details that came out after the meeting show that it was decided to raise the tax collection goal from Rs 7,005 billion to Rs 7,450 billion in the next budget and to raise the customs collection goal from Rs 950 billion to Rs 1,005 billion.
Not only that, but it was also decided at the meeting that the GST would go up from Rs 3,008 billion to Rs 3,300 billion. In the meantime, Rs 55 billion will be added to a goal for collecting income tax.
Whereas, the IMF demanded that an 11% sales tax be put on petroleum products starting July 1.
The sources also said that the IMF wanted to charge Rs 50 per litre for petroleum products and agreed to charge Rs 5 per litre per month.
In the next few days, the IMF mission will work with the SBP to finalise the financial goals. At the same time, Pakistan will receive the draught Memorandum of Understanding on Economic and Monetary Policy (FEFP).
On Tuesday night, the Federal Minister for Finance, Miftah Ismail, said that “Pakistan and the IMF locked down the details of the budget and made a lot of progress toward finalising budgetary goals for 2022–23.” “The MEFP will soon be shared by the IMF,” he said.
