The federal government is all set to promulgate a Presidential Ordinance to impose taxes to the tune of Rs200 billion aimed at breaking a deadlock with the International Monetary Fund (IMF).
According to sources with access to the issue, the government has planned to impose a “flood levy” of between 1 and 3 percent through the issuance of a presidential edict.
According to sources, the decision to impose a flood levy was taken in order to reduce imports. They also stated that while a 1% rate could be applied to imported goods, a 2% levy would be applied to all other commodities that are not considered luxury goods.
They said that a 3% fee might well be imposed on expensive items. Starting on February 1, 2023, the mini-budget will be in force.
The talks between Pakistan and the International Monetary Fund (IMF) in Geneva have remained “inconclusive,” it is important to note.
On January 7, the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva and Prime Minister (PM) Shehbaz Sharif spoke on the phone.
The prime minister reiterated his government’s commitment to complete the requirements of the Fund’s programme during the conversation.
According to a report from December 2022, the Pakistani government hopes to save the agreement with the International Monetary Fund (IMF) that calls for the payment of a loan tranche under the $7 billion rescue plan in January.