ISLAMABAD: The International Monetary Fund’s (IMF) has termed the recent discussions with Pakistan on ninth review as positive and productive.
IMF’s Country Representative Ester Perez has said that the discussions with the Pakistani government on the ninth review were productive and positive.
“Discussions have enabled a revision to the macroeconomic outlook post floods as well as an in-depth evaluation of fiscal, monetary, exchange rate, and energy policies adopted since the completion of the combined seventh and eighth reviews,” said Perez.
The IMF Pakistan chief said that the global lender is looking forward to continuing dialogue over policies that adequately address the humanitarian and rehabilitation needs from the floods while also preserving fiscal and external sustainability given available financing.
On the other hand, a top Pakistani government officials were of the viw that the talks have been continuing positively with IMF and both sides would be able to strike a staff-level agreement soon.
On the other hand, sources told the publication that Pakistan has requested the lender to allow an adjuster of Rs320 billion in the budget deficit for the current fiscal year 2022-23 as the said amount was the expenditures on flood rescue and relief.
To boost its tax collection target, the government is considering imposing a flood levy in the ongoing fiscal year and different proposals are under consideration for finalising its exact modalities.
Although the political leadership has agreed in principle to take additional taxation measures but they want to adopt them in such a way there is no extra burden on the common man amid higher inflation and low growth trajectory.
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