After months of negotiations, Pakistan and the International Monetary Fund (IMF), finally reached a consensus agreement on the bailout package for Pakistan, but now reports have started circulating that due to IMF’s condition of heavy tax collection, Prime Minister Imran khan has expresses reservations over the final draft of the agreement and allegedly rejected the draft, sources said. Pakistan has not yet declared the final agreement with IMF publicly.
As per sources, newly appointed adviser to PM on Finance Abdul Hafeez Sheikh and other officials called on PM Khan after finalization of agreement draft but PM Khan has rejected the draft and directed officials to convince the IMF to reduce target of tax collection, besides taking further relaxation with regard to tax exemption, the sources added. PM Imran has also insisted IMF on inclusion of some new conditions in the programme, which appeared unreasonable.
Earlier the spokesman of the Finance Ministry, Dr. Khaqan Hasan Najeeb has said that “We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend,”, his statements came after Pakistan accepted the conditions of IMF including increase the prices of gas and electricity.
The IMF’s delegation arrived in Pakistan on April 26 and has been here for 11 days. After multiple meetings with government officials, including officials from the provinces, it was expected that an announcement would be made that the package is finally ready. Finance department officials declined to comment on the deal and said there could be an extension in talks.
It is expected that a three-year $6.5 billion package will be given to Pakistan. From July 1, electricity is going to get more expensive and Rs600 billion in taxes will be imposed. The subsidy on electricity is being done away with except for consumers using less than 300 units and industries.
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26 May, 2019