IMF deal: Pakistan likely to introduce mini budget for second review

ISLAMABAD: Pakistan is likely to introduce a mini-budget as the International Monetary Fund (IMF) has sought a plan for ‘better tax’ collection from property and agriculture sectors, ARY News reported, citing sources.

The international lender has sought a plan of better tax collection for the second review of the Stand-By-Arrangement (SBA) of $3 billion.

Sources having knowledge of the matter said that IMF is pushing Pakistan for better tax collection from property and agriculture sectors after increasing the ratio of tax.

The decision to slap tax on property and agriculture sectors will be taken by the new government, the sources said and a mini-budget is likely to be introduced if the Federal Board of Revenue (FBR) approves the IMF’s plan.

Read more: Pakistan receives first tranche of $1.2bln from IMF

The International Monetary Fund (IMF) is also demanding to make provinces ‘active’ for the betterment of taxable income from the agriculture sector.

Pakistan on Thursday received the first tranche of $1.2 billion from the International Monetary Fund under the SBA programme.

Dar said the remaining $1.8 would be released after two reviews, meaning that there would be two instalments.

The International Monetary Fund (IMF) on Wednesday night approved a $3 billion loan for Pakistan after signing the staff-level agreement last month.