Pakistan assures IMF to meet its demands for bailout package revival

ISLAMABAD: Pakistan has formally assured the International Monetary Fund (IMF) to meet its demands for reviving the stalled loan programme, citing sources ARY News reported.

According to sources, a roadmap has been provided for revival of the IMF debt package. Moreover, proposals for increasing tax revenue have also been handed over to the lender.

A mini budget of around 200 billion rupees has been suggested for increasing tax revenues. “Preparations are in offing for an ordinance to enforce the mini budget,” according to sources.

“The mini budget will come into force from February 1st,” sources at the Ministry of Finance disclosed.

According to sources, Flood Levy will be enforced over imports in the mini budget. “Flood Levy will also be imposed over imported raw material and furnished items,” sources said.

Moreover, three percent flood levy will be imposed over the luxury items. One percent Flood Levy will be enforced over the imported goods presently having zero-customs duty.

Flood Levy will also be clamped over the foreign exchange profit of banks, ministry sources said.

“A roadmap to lower circular debt in energy sector has also been sent (to the IMF),” sources shared.

The government is trying to convince the lender to send its delegation in Pakistan within next two weeks. “IMF team could arrive in the last week of January or first week of February,” ministry sources said.

“Pakistan also striving for online talks with the lending institution,” according to sources.

The International Monetary Fund (IMF) had shared lists of prerequisite actions to Pakistan and told the authorities that Islamabad will have to move towards implementing all demands for reviving the stalled Fund programme.

IMF has asked Pakistan to take all required actions that could pave the way for striking a staff-level agreement and releasing of $1 billion tranche under the Extended Fund Facility (EFF).

The sources say the IMF has sought a roadmap from Pakistan for the collection of Rs855 via petroleum levy till June 30, 2023. The Pakistani authorities have to jack up levy on diesel by Rs15/litre and drag it to Rs50/litre.