Rs200bn mini-budget on the cards to appease IMF

ISLAMABAD: The federal government is all set to promulgate a Presidential Ordinance to impose taxes to the tune of Rs200 billion aimed at breaking a deadlock with the International Monetary Fund (IMF), ARY News reported on Thursday quoting sources.

Sources privy to the development told ARY News that the government has decided to slap a “flood levy” in the range of 1 to 3% through the promulgation of a presidential ordinance.

The decision to impose flood levy has been taken to curtail imports, say sources, adding that the 1% rate could be charged on imported goods, 2% levy will be imposed on goods that do not fall in the category of luxury items.

The luxury items may attract a 3% levy, they added. The mini-budget will come into effect from February 1 2023.

It is pertinent to mention here that the talks between Pakistan and International Monetary Fund (IMF) in Geneva have remained ‘inconclusive’.

Earlier on January 7, Prime Minister (PM) Shehbaz Sharif held a telephonic conversation with Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva.

During the conversation, the prime minister reiterated his government’s resolve to complete the terms of Fund’s programme.

In December 2022, it was reported that Pakistan government hopes to revive the deal with the International Monetary Fund (IMF) for the disbursement of a loan tranche under the $7 billion bailout package in the month of January.