IMF agreement: Pakistan not allowed to offer tax amnesty

ISLAMABAD: Pakistan has given nine ‘major assurances’ to International Monetary Fund (IMF) following the staff-level pact on a $3 billion stand-by arrangement, crucial for the country which is teetering on the brink of default, ARY News reported on Monday, citing sources.

Sources told ARY News that Pakistan has sent the letter of intent – signed by Finance Minister Ishaq Dar and Governor State Bank Jameel Ahmed – to global lender, giving nine ‘major assurances’ following the staff-level pact on a $3 billion stand-by arrangement.

The assurances to IMF are as follow:

No amnesty scheme will be offered during nine months
Tax revenues will be increased
Govt to implement financial discipline
Energy reforms will also be implemented
Exchange rate to be determined by market
Trade restrictions will be lifted
Govt to implement assurances of lending countries, institutions
Measures will be taken to increase foreign exchange reserves
Reforms will be introduced in state institutions

Sources further claimed that the IMF’s executive board will consider the letter of intent forwarded by Pakistani government on July 12. After this approval, Pakistan can receive a loan of $3 billion.

Last week, Pakistan signed $3 billion staff-level agreement with the International Monetary Fund (IMF) following the conclusion of staff-level agreement.

As per details, the government of Pakistan and IMF $3 billion staff-level agreement was signed in a ceremony held in Lahore.

Prime Minister Shehbaz Sharif, Finance Minister Ishaq Dar and Information Minister Marriyum Aurangzeb were present at the ceremony

International Monetary Fund (IMF) announced that a “Stand-By Arrangement” between the global money lender with Pakistan has been reached successfully.

IMF Mission Chief Nathan Porter along with his team maintained continuous communication with Pakistani authorities and completed the agreement through virtual negotiation.

The final approval of this agreement will be given by the IMF’s executive board, which is expected to take place in mid-July. After this approval, Pakistan can receive a loan of $3 billion.