ISLAMABAD: The completion of the IMF bailout package agreement between the Pakistan and the International Monetary Fund (IMF) is expected to be completed by Friday, in which both sides agree to terminate the waiver of Rs 700 billion in two years in taxes. In the meeting, both sides talked on the financial year of 2019-20 and also agree to fulfil the financial crisis of $ 11 billion. In the meeting regarding IMF bailout package, the Finance Minister’s Finance Secretary, who will see the policy matters and the two senior officials of the Federal Board of Revenue (FBR) will see tax measures, from Government side.
Under the IMF bailout package agreement, the government will start financing tax exemption in the budget of 2019-20, which is equivalent to Rs.350 billion. In addition, IMF and Government both are also agree to increase electricity and gas prices in next budget 2019.
Further, it was compromised that the National Electricity Power Regulatory Authority (NEPRA) will be made independent and the government will reduce interference for popular decisions facilitating the public. In this regard, an official said that IMF has also agreed on the demand for increasing 100-200 basis points in policy rate. With this, both sides also agreed to take different measures to increase exchange reserves.
According to the Finance Ministry, the IMF had earlier emphasized that the current account deficit should be between $ 4-6 billion, but later it was agreed that the next financial under IMF program The financial deficit in the year will be up to $ 8 billion. With this, the IMF team directed the government to take more tax measures in the next budget for financial adjustment, it would be clear that the budget will begin to be prepared after completion of the contract at the staff level.