Pakistan’s formal talks with the International Monetary Fund (IMF) on the ninth quarterly review of the Extended Fund (EFF) are likely to be further delayed amid the authorities’ demand to impose additional taxes.
Minister of State for Finance Dr. Aisha Ghaus Pasha also confirmed the development, saying the talks were originally scheduled for the last week of October but were delayed after gaps in the estimates from both parties.
He further said that the IMF is demanding to impose additional taxes and is pushing to stick to the committed tax-to-GDP ratio of at least 11%.
“Pakistan’s economic growth rate may be below target by more than 2 percent due to recent floods,” he explained, ruling out the possibility of imposing additional taxes.
Earlier, Ayisha Ghous Pasha had said that the IMF was informed about the increase in expenses due to unprecedented floods in the country.
“Emergency and available resources were used to deal with the flood situation,” the state minister said. Pakistan will also demand additional funds from the IMF,” the minister said.
The monetary fund has asked for a report on the targets that could not be met due to the floods, the sources added.