Complete surrender
ISLAMABAD: The government has increased the tax collection target to over 9.4 trillion rupees from the proposed target of 9.2 trillion rupees in a bid to please the IMF.
For the fiscal year 2023-24 starting next month, the government has decided to enhance Rs215 billion in tax revenue and reduce Rs85 billion in spending.
Finance Minister Senator Muhammad Ishaq Dar disclosed this on Saturday in the National Assembly.
“Pakistan and the IMF had detailed negotiations as a last-ditch effort to complete the pending review,” Dar told the parliamentarians.
Finance Minister said that the government has completed all the conditions of the IMF to unlock a 1.1 billion dollar held-up tranche.
Finance Minister also said the government held talks with the IMF seriously. He said that once the government settles a deal with the IMF, we will share details with the Parliament and the public. The government will place its agreement with IMF on the website of the Ministry of Finance.
New Tax target for 2023-24
Dar said the proposed tax collection target of the FBR would be Rs 9.415 trillion against the earlier proposal of Rs 9.2 trillion.
He said the provincial share will increase from Rs5.276tr to Rs5.390tr, the federal government total expenditure estimate from Rs14.460tr to Rs14.480tr, and the pension estimate from Rs761 billion to Rs801bn.
Senator Muhammad Ishaq Dar further said the subsidy estimate is around Rs1.064tr and grants at Rs1.405tr.
Govt close to sealing a deal with IMF
Pakistan government and IMF officials are close to finalizing a deal that will unlock a $1.1 billion stalled tranche.
Prime Minister Shehbaz Sharif’s meeting with the Managing Director of the IMF Kristalina Georgeiva has brightened the chances for revival of the IMF loan in a few days.
Once both sides settle the remaining issues, the federal government will announce this much-awaited development.
Importantly, six days are left before the expiry of the stalled IMF program which will end on June 30.
Government officials are working to clear hurdles between Pakistan and the IMF in the way of the revival of a loan program have been removed.
The breakthrough emerged after prime minister Shehbaz Sharif held an important meeting with the IMF Managing Director Kristalina Georgieva in Paris.
Finance Minister Ishaq Dar and his team are busy settling the issues for the last three days.
The IMF and Finance Ministry teams are working on the new draft early on Saturday morning.
