KARACHI: The International Monetary Fund (IMF) has denied Pakistan’s request to send a team for a review, and has instructed the Finance Ministry to take necessary actions before scheduling a visit.
The development surfaced after Pakistan requested the IMF to send its review mission to Islamabad next week in order to complete the pending 9th Review under the $7 billion Extended Fund Facility (EFF).
Despite efforts by Pakistan to reach a consensus with the IMF on loan conditions, concerns remain that even if Pakistan implements recommended measures such as increasing taxes, power and gas prices, and allowing the exchange rate to depreciate, it may still be considered insufficient by the IMF.
In an effort to comply with the conditions of the International Monetary Fund (IMF), Pakistan set to present a mini-budget filled with taxes.
According to sources in the finance department, the flood-affected country required loans to sustain its economy.
A report by Capital TV states that sources had said that a “flood levy” will be imposed on imports through the mini-budget, affecting both raw materials and finished goods.
Additionally, sources claim that the government plans to impose a 3% flood levy on imported luxury items and convert the 0% custom tax into 1%.
The budget has been prepared, the Finance Minister has briefed the Prime Minister on the mini-budget, and the government has also kept the IMF informed about the budget.
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