Pakistan, IMF talks likely to be delayed further

ISLAMABAD: Pakistan’s formal talks with the International Monetary Fund (IMF) on the 9th quarterly review of the Extended Fund Facility (EFF) are likely to be delayed further amid authorities’ demand to impose additional taxes, ARY News reported quoting sources.

State Minister for Revenue Dr Aisha Ghaus Pasha also confirmed the development, saying the talks were originally due in the last week of October but kept on delaying following gaps in estimates by two sides.

She further said that IMF was demanding to impose additional taxes and pushing for sticking to committed tax-to-GDP ratio of at least 11pc.

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“Pakistan’s economic growth rate may fall short of the target by more than 2% due to the recent floods,” she explained and ruled out the possibility of imposing additional taxes.

Earlier, Ayisha Ghous Pasha had said that the IMF was informed about hike in expenditures due to unprecedented flooding in the country.

“The emergency and available resources were utilized to tackle the flood situation,” state minister said. Pakistan will also demand additional funds from the IMF,” minister said.

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The monetary fund has asked for a report with regard to the targets that could not be achieved due to floods, sources added.