IMF programme to be revived within days: Miftah Ismail

ISLAMABAD: Federal Minister for Revenue and Finance Miftah Ismail on Monday announced that the stalled International Monetary Fund’s (IMF) Extended Fund Facility (EFF) would be revived within a few days.

“I am very hopeful that the IMF programme will be revived within a day or two,” the finance minister said while speaking to journalists.

Miiftah Ismail said the IMF has not objections over the government’s decision to raise salaries or any income tax exemption for earnings up to Rs1.2 million.

The finance ministry was expected to conclude the staff-level agreement by June 19 on the basis of revenue and expenditure measures for next year’s primary budget.

The finance minister told journalists that the government aims at taxing the wealthy and providing relief to the poor through the budget for the fiscal year 2022-23.

“IMF has no relation with the increase in salaries. Also, the tax exemption to the people earning below 1.2 million annually will remain in place,” he said.

READ MORE: ‘Not using official residence’: Miftah denies reports of hefty expenses on renovation

The announcement come amid uncertainty over the revival of the IMF programme which has depreciated the rupee against the dollar. The government took toughest measures to end fuel subsidies and hiked the prices of petroleum products.

It has been reported that Finance Minister Miftah Ismail and State Minister for Finance Aisha Ghaus Pasha held a meeting with US ambassador last week over the revival of the programme.

The Unites States has agreed to help Islamabad negotiate a deal with the global financial institution leading to the signing of staff-level agreement between both sides.

Regarding the proposed taxes on property, Miftah said that once construction begins on an empty plot, it will be exempted from taxes.

The finance minister said if permission has been granted to start construction on a piece of land but has not commenced then taxes will have to be paid.

In the budget, the finance minister proposed a 15% capital gains tax on immovable property for a one-year holding period which will be reduced by 2.5% every additional year.

Moreover, he has also proposed advance tax on filers to be increased to 2% from the previous 1% on the purchase of property and non-filers 5%.

Catch all the Pakistan News, Breaking News Event and Latest News Updates on The BOL News