Virtual talks between Pakistan, IMF postponed till tomorrow

Ninth review virtual talks between Pakistan and IMF has been postponed till tomorrow,

Sources said that talks, which was to be held today, had been postponed at IMF’s request.

They added that the IMF has sought time to review the MEFP.

The sources said that the IMF would start negotiations after reviewing preconditions and implementation. However, Pakistani officials are hopeful that a staff-level agreement with the IMF will be reached next week.

The finance minister has also said that now the agreement with the IMF for the restoration of the program can be done next week.

Earlier, to meet the prerequisites for unlocking the $1.1 billion International Monetary Fund (IMF) loan, Minister for Finance and Revenue Senator Ishaq Dar on Wednesday moved the Finance (Supplementary) Bill 2023 or the “mini-budget” in the National Assembly.

Addressing the lower house of parliament, Dar proposed the imposition of new taxes worth Rs 170 billion in various sectors to minimize the fiscal deficit of the current fiscal year 2022-23.

The finance minister said the government has proposed to increase the General Sales Tax on the import of luxury items from the existing 17% to 25%, while overall General Sales Tax has also been increased from the existing 17% o 18%.

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The minister said the government recently held talks with the International Monetary Fund (IMF) to revive the programme with the IMF in which it was agreed that the government would take some tough decisions to streamline the deteriorating condition of Pakistan’s economy.

He said the new revenue measures would not affect the poor segment as most of the new taxes were being imposed on luxury items not used by them.

Dar compared the performance of the previous PML-N and PTI governments. He said that during former prime minister Nawaz Sharif’s tenure, the GDP per capita increased while the Pakistan Stock Exchange’s (PSX) market capitalisation was $100 billion.

However, the PSX’s market capitalisation declined to $26bn during the PTI government, he said, adding that the decrease showed a lack of investor confidence in the previous government.