Islamabad (TDI): No mini-budget will be introduced before the end of June as the International Monetary Fund (IMF) has expressed satisfaction with Pakistan’s economic measures.
The final day of talks between Pakistan and the IMF will conclude today, following technical sessions and policy-level negotiations.
A meeting between the IMF delegation and Finance Minister Ishaq Dar is scheduled today, with an iftar dinner hosted by the minister in honor of the delegation.
Once the discussions are finalised, the IMF team will prepare an assessment report, which will be submitted to the Executive Board for a decision on the release of the next $1 billion tranche of financial assistance to Pakistan.
The agenda for today includes reviewing the budgetary targets of Pakistan, the performance of the ongoing fiscal year, and discussing the tax shortfall as well as new tax goals, according to Express News.
Both sides are likely to finalize proposals before the conclusion of the talks.
Read More: Pakistan, IMF Begin Talks on $7b Bailout Review
Pakistan has engaged in extensive talks with the global lender, fulfilling most of the its targets and providing all necessary economic data.
However, the IMF has urged for the removal of tax exemptions for solar panels and electric vehicles, which it views as luxury items benefiting the wealthy.
The IMF also urged for the elimination of tax breaks on electric vehicle parts and stricter enforcement of fiscal discipline.
Read More: IMF Mission in Pakistan for Economic Review
Once the talks are concluded, the IMF delegation will return, with the final deals expected to shape the next phase of Pakistan’s economic support from the global lender.
Pakistan on Thursday urged the IMF to allow it to slash the tax rates at par with the regional nations to stop the increasing outward flight of money, as the Fund did not see any major progress in tapping true incomes of retailers and real estate dealers.
