Negotiations between Pakistan and the International Monetary Fund (IMF) have started and on the first day of the technical level talks, apart from imposing General Sales Tax (GST) on petroleum products, Pakistan was also asked to raise the levy to 70 rupees. The suggestion has been made.
The IMF team headed by Nathan Porter arrived in Pakistan and on the first day technical level discussions were held.
The IMF team was met by officials from the Federal Board of Revenue (FBR), Ministry of Finance, State Bank and Ministry of Energy.
The meeting discussed meeting the shortfall in FBR targets, besides discussing energy sector reforms.
Pressure increased on Pakistan to bring a mini-budget
Naji TV quoted sources as saying that IMF has proposed to impose GST on petroleum products, currently zero GST is imposed, levy of 60 rupees per liter on petroleum products. is going, which is likely to be increased to 70 rupees.
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According to sources, there will also be a discussion on meeting FBR targets and new tax measures tomorrow.
Apart from this, the agenda of external financing is also included in this discussion, the privatization program will also be discussed and the issue of privatization of PIA will also be considered.
If the tax revenue cannot be increased, the tax on the salaried class and industries will increase, said the Finance Minister
It should be noted that the IMF delegation will remain in Pakistan till November 15, which will be briefed on the economic performance of the first quarter.
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**Interviewer:** Welcome to our news segment! Today, we have with us economic analyst Dr. Aisha Khan to discuss the recently initiated negotiations between Pakistan and the International Monetary Fund (IMF). Thank you for joining us, Dr. Khan.
**Dr. Aisha Khan:** Thank you for having me!
**Interviewer:** Let’s dive right in. We understand that the IMF team, led by Nathan Porter, has kicked off technical level talks with the Pakistani government. What can you tell us about the initial discussions?
**Dr. Aisha Khan:** The discussions have already revealed some of the challenges that Pakistan is facing. The IMF has suggested implementing a General Sales Tax on petroleum products, which could significantly impact consumers. Additionally, there’s a proposition to raise the petroleum levy to 70 rupees. This could be seen as a way to enhance revenue, but it risks increasing the already high cost of living.
**Interviewer:** That sounds like a significant move. What do you think prompted the IMF to recommend these specific measures?
**Dr. Aisha Khan:** The IMF is focused on fiscal consolidation and ensuring that Pakistan can meet its international financial obligations. By suggesting an increase in GST and the petroleum levy, they are pushing for measures that would help secure more revenue for the government, which is crucial for stabilizing the economy.
**Interviewer:** Many people are concerned about the implications of these measures on ordinary citizens. How do you see these changes affecting the everyday lives of Pakistanis?
**Dr. Aisha Khan:** The imposition of GST on petroleum products and hike in the levy would likely lead to higher transportation costs and ultimately increase prices for goods and services across the board. This could disproportionately impact low and middle-income families, exacerbating existing economic pressures.
**Interviewer:** With these talks underway, what do you think the future holds for Pakistan’s economy, especially in the context of this negotiation?
**Dr. Aisha Khan:** It’s a precarious situation. While securing funding from the IMF is crucial for stabilizing the economy, the conditions attached could lead to public discontent. The government will have to carefully balance fiscal measures and social welfare to ensure they don’t ignite widespread protests or unrest. The coming weeks are critical as negotiations progress.
**Interviewer:** Thank you for that insightful analysis, Dr. Khan. It certainly seems like a challenging time for Pakistan. We appreciate your time and expertise today!
**Dr. Aisha Khan:** Thank you! It’s my pleasure to discuss these important issues.