Pakistan 'assures' IMF of imposing Rs18bln new taxes monthly
- By Web Desk -
- Jan 21, 2024
ISLAMABAD: The Pakistan government has reportedly assured the International Monetary Fund (IMF) of imposing new taxes worth Rs18 billion, monthly, ARY News reported, citing sources.
The sources say, the development comes after “do more” demands of the International Monetary Fund.
The government has assured the IMF of slapping additional taxes on textile and sugar to meet the expected shortfall in tax collection.
The caretaker government has shared a plan with the IMF regarding the increase in taxes. The Pakistan government has planned to fix tax collection target of Rs11,000 billion.
The government has proposed jacking up GST on textiles and leather goods to 18pc from 15pc.
Read more: Pakistan receives $700mn loan tranche from IMF
On January 17, Pakistan on Wednesday received $700 million loan tranche from the International Monetary Fund (IMF) under the nine-month Stand-By Arrangement (SBA).
The development comes days after the Executive Board of the IMF completed the first review of Pakistan’s economic reform programme supported by the SBA.
The Board’s decision allowed for an immediate disbursement of around $700 million, bringing total disbursements under the arrangement to about $1.9 billion.
The IMF’s nod follows the staff-level agreement reached between the Fund and Pakistan on November 15, 2023, emphasizing the nation’s commitment to implementing key reforms.