FinMin says ‘Pakistan assured IMF of controlling budget deficit’

Caretaker Finance Minister Dr Shamshad Akhtar said Monday that Pakistan has assured International Monetary Fund (IMF) of controlling budget deficit by cutting expenditures, ARY News reported.

While informally talking to ARY News, Caretaker Finance Minister Dr Shamshad Akhtar vowed that tax burden will not be broaden on the Pakistani nation and the IMF’s tax target would remain unchanged at Rs9,415 billion.

“The federal government would adopt austerity policy to cut expenditures. We assured IMF of controlling the budget deficit by reducing our expenditures. The policy-level talks between Pakistan and IMF are progressing in a positive way. The finance secretary is holding policy-level talks with the IMF mission.”

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She said that IMF showed complete satisfaction on the caretaker government’s steps including Pakistan’s development spending and Benazir Income Support Programme (BISP).

‘Tax target unchanged’

The caretaker government will not impose “any new taxes” as the officials have convinced International Monetary Fund (IMF) mission, visiting Pakistan, to review the country’s economic performance, ARY News reported on Monday, citing sources.

Pakistan is operating under a caretaker government after an IMF loan programme, approved in July, helped avert a sovereign debt default.

Under the $3 billion standby arrangement (SBA), Pakistan received $1.2 billion from the IMF as the first tranche in July.

Last week, an IMF mission kicked off its review for the second loan tranche, which is expected to continue till Dec 15. A successful review would unlock $710 million for the country in December.

Sources told ARY news that a major breakthrough in talks between Federal Bureau of Revenue (FBR) and IMF review mission has been achieved.

The caretaker government has convinced International Monetary Fund (IMF) that it will not impose “any new taxes” on already-burden people of Pakistan, they claimed

Informed sources claimed that IMF had agreed on maintain the tax target at Rs9,415 billion.