IMF emphasizes to impose tax on agriculture
ISLAMABAD (92 News) – The International Monetary Fund (IMF) has demanded the more strict conditions for the bailout package as the IMF emphasized to impose tax on agriculture. According to the sources, the IMF also did not accept the finance team of Pakistan and expressed Adviser to Prime Minister Shaikh Abdul Hafeez negative views about his financial team. The International Monetary Fund demanded Pakistan do more for getting bailout package. The IMF shared its view with the adviser to PM that the current financial team of Pakistan cannot fulfill the expectations. According to the sources, the IMF officials said that the financial team cannot implement on the bailout package due to disorder between the team. “The financial team delayed to formulate the policy framework,” the sources said, adding that the team could not make policy on the tax of electricity, gas and petroleum products. It also said that the IMF asked names of focal persons for every concerned institution. However, the IMF also demanded to impose tax on the agriculture related things. They demanded to impose sale taxes on fruits, vegetables, education, transport and health. It added that they demanded to remove subsidy on the electricity on agricultural tube wells. On the other hand, the international finance companies initiated the debates on IMF bailout package. Top Line International including other companies declared Pakistan’s current IMF bailout package as economic danger for the country. Meanwhile, the analyst said that the rate of dollar will be expected to reach 160 to 165 on December and inflation rate would be 10 per cent. It also said that all the governmental institutions will be privatize. Pakistan, IMF likely to sign bailout package deal today It is worth mentioning here that talks between Pakistan and the IMF have entered in its concluding phase as both the sides are likely to strike the fresh bailout package deal today. IMF agreement, if finalised, would require Pakistan to hike power tariffs and taxes and withdraw subsidies The federal government and the International Monetary Fund (IMF) are close to finalising a staff-level agreement expected to range between $6-7 billion, sources in the Ministry of Finance said on Friday. Both the sides are set to hold the last round of talks today in which the proposed bailout package would be finalised. The loan amount is expected to be around $6.4 billion for a three-year duration, the sources informed. Under the proposed bailout agreement, Pakistan would have no choice but to concede to the IMF’s demands to hike power tariffs and taxes and withdraw tax concessions and exemptions - which are among the conditions that the country has accepted to secure the loan. Under the proposed agreement, the government would not control the rate of the dollar, and subsidies in the energy sector as well as other sectors would be withdrawn. Furthermore, the plan to privatise institutions incurring losses would be shared with the IMF. The IMF and the Ministry of Finance would release a joint press statement if the agreement is finalised. If no agreement is reached, both the sides would issue separate press releases, the sources added.