Govt to implement new taxes worth Rs170bn to complete IMF program: Ishaq Dar

February 10, 2023 (MLN): The federal government will impose taxes worth Rs170 billion through ordinance or finance bill to complete the IMF program against the false reporting of Rs500bn to Rs600bn, the federal minister for Finance and Revenue Ishaq Dar said while talking to media on Friday. 

Speaking about the development of IMF talks, he said, "The government is following standard procedures outlined by the fund in its efforts to stabilize the economy. Before traveling, the IMF released its Memorandum for Economic and Financial Policies (MEFP) document, which outlines the measures proposed to address the country's economic challenges."

The officials will review the MEFP document thoroughly until Monday and hold talks with the IMF on the same day. The focus of these discussions will be to address the measures proposed to stop the bleeding of the economy, which has been in a state of decline for the last three years, he added. 

After this review, the country will get $1.2bn which is much needed for the economy. 

He further clarified, "We cannot bring gas circular debt to zero. However, the government will try its best to prevent the circular debt from the further increase."

Responding to the query pertaining to the delay in Staff Level Agreement, he said, "It will take a few days to complete Staff Level Agreement as it requires a few protocols to be followed."

The government will impose a fuel surcharge of Rs5 per liter on diesel starting March 1st and March 5th. Additionally, the budget for the Benazir Income Support Program (BISP) will be increased by Rs 40bn, bringing the total budget to Rs400bn.

One of the major challenges facing the economy is the cost of electricity, which is currently estimated to be Rs300bn while only collecting Rs1800bn. Despite these challenges, the government reports that the recent ten-day dialogue with the IMF ended positively.

Friendly countries will also fulfill their commitments, he noted. 

The IMF team accepted Pakistan's demand not to impose a sales tax during its recent visit to the country.

During the discussions, the issue of the National Accountability Bureau (NAB) restructuring was not on the agenda.

The former Prime Minister of Pakistan has frequently stated that the country is in a debt trap and that corruption is preventing investment.

The previous government's actions had a negative impact on the country's financial situation and its ability to attract investment.

It should be noted that the IMF team had lost trust in the previous government due to its unfulfilled commitments.

Despite the challenges, the current government is working to restore the IMF's trust and ensure that the country's economy improves.

The IMF team's positive response to the government's efforts is a promising sign for the future of Pakistan's economy and its ability to attract investment.

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