Pakistan has formally assured the International Monetary Fund (IMF) to meet its demands for reviving the stalled loan programme.
A proposal has allegedly been given for the revival of the IMF loan package, according to sources. Moreover, suggestions for raising tax revenue have been provided to the lender.
For increasing tax collections, a budget of almost 200 billion rupees has been proposed. “Preparations are in offing for an ordinance to enforce the mini-budget,” according to sources.
“The mini-budget will come into force from February 1st,” sources at the Ministry of Finance disclosed.
Sources suggest that the flood levy will be applied to imports under the small budget. According to sources, ” “Flood Levy will also be imposed over imported raw material and furnished items,” sources said.
Moreover, a flood levy of 3% will be imposed on luxury items. For imported items with zero customs charge at the moment, a 1% Flood Levy will be imposed.
According to ministry sources, a Flood Levy will be imposed on banks’ foreign exchange profits as well.
“A roadmap to lower circular debt in the energy sector has also been sent (to the IMF),” sources shared.
The government is trying to convince the lender to send its delegation to Pakistan within the next two weeks. “IMF team could arrive in the last week of January or first week of February,” ministry sources said.
“Pakistan also striving for online talks with the lending institution,” according to sources.
The International Monetary Fund (IMF) provided Pakistan with a list of necessary steps and informed the authorities that Islamabad will have to take action to meet all requirements before the Fund programme might be resumed.
The IMF has requested that Pakistan take all necessary steps to enable the signing of a staff-level agreement and the release of a $1 billion tranche under the Extended Fund Facility (EFF).
The sources say the IMF has sought a roadmap from Pakistan for the collection of Rs855 via petroleum levy till June 30, 2023. The Pakistani authorities have to jack up levy on diesel by Rs15/litre and drag it to Rs50/litre.
