The IMF demands came ahead of negotiations between Pakistan and the IMF to revive the loan program.
The IMF has presented several demands from the government, including the imposition of additional taxes, increased electricity and gas prices, and a market-based exchange rate policy for the revival of negotiations
The IMF has demanded an increase in the price of electricity by more than Rs 10 per unit, while a 17 per cent GST on oil has been proposed.
The government has been called on to pass on the burden of costs to consumers to reduce current debt, privatize loss-making public institutions, while additional economic data, including flood spending, has also been sought.
It should be remembered that the preparation of the mini-budget proposal by the government is ongoing. Property, bank transaction, tax on imported goods, flood levy are being considered in the proposed mini budget to raise revenue.
Oil tax guarantee and gas price hike
On the other hand, in virtual talks between Pakistan and IMF at a technical level, the government has assured to increase the rate of oil and the price of gas.
According to the sources, the Pakistani delegation led by Finance Secretary Hamidi Yaqub Sheikh briefed the IMF officials about the details of Pakistan’s expenditure for the rehabilitation of the flood-affected areas. The Pakistani delegation opined that they will succeed in achieving the tax collection target.
The timetable for formal negotiations with the IMF to restore the loan program is likely to be set this week, the sources said.
It should be noted that I am heading to an event today The prime minister said That the IMF has clearly said that it wants to complete the ninth review with you, we want to sit down and flesh out your terms. Shahbaz Sharif said that today we are in great difficulties, we will bring the country together from these difficulties, we will make Pakistan a great country, but there are conditions for this.