The International Monetary Fund (IMF) has requested a plan for ‘improved tax’ collection from the property and agriculture sectors, thus Pakistan is likely to establish a mini-budget.
The foreign lender has requested an improved tax collection plan for the second review of the $3 billion Stand-By-Arrangement (SBA).
According to sources familiar with the situation, the IMF is pressuring Pakistan to increase revenue collection from the property and agriculture sectors after boosting the tax ratio.
The new government will decide whether to tax the property and agriculture sectors, according to sources, and a mini-budget would be established if the IMF’s plan is approved by the Federal Board of Revenue (FBR).
The International Monetary Fund (IMF) additionally encourages provinces to become ‘active’ in order to increase taxable income from agriculture.
The International Monetary Fund provided Pakistan with the first tranche of $1.2 billion under the SBA programme on Thursday.
Dar stated that the remaining $1.8 million would be released after two reviews, implying two installments.
After signing a staff-level agreement last month, the International Monetary Fund (IMF) authorized a $3 billion loan for Pakistan on Wednesday night.
