IMF team arrives today

KARACHI: A team of International Monetary Fund (IMF) will visit Pakistan from today (Monday. The purpose of visit is to hold technical negotiations for progress on IMF loan.

The IMF mission headed by Ernesto Ramirez Rigo will reach Pakistan on April 29 and will be in the country till May 7. The mission will also visit various institutions during their time in the country, say media reports.

IMF is asking Pakistan to increase the country’s Gross Domestic Product (GDP) by 13.2 per cent while the government has assured an increase by 12.7 per cent, say sources. They say during negotiations with the IMF there is also expected to be detailed discussion on the revenue framework. The recommendation to impose Rs729 billion tax in the budget is under consideration.

The sources said that a discussion over recommendations and budget strategy papers for the federal budget will also be held with the IMF review mission.

Taxes equivalent to 1.4 of the GDP are likely to be imposed in the next budget. Relief in taxes for the import and manufacturing sector will also be granted.

There are recommendations to impose Rs634 billion for inland revenue, Rs95 billion in lieu of customers duty, Rs334 billion in lieu of income tax, Rs150 billion in lieu of sales tax and Rs150 billion in lieu of Federal Excise Duty in the budget.