Pakistan Economic Crisis: To Open Its Wallet, IMF Sets These Tough Conditions For Pakistan: 10 Points

To open its wallet, the IMF set these 'difficult' conditions for Pak: 10 points

IMF expects Pakistan to take steps to fill large financial gap

New Delhi:
Pakistani Prime Minister Shehbaz Sharif said the International Monetary Fund (IMF) had set “difficult conditions” for Pakistan to agree to if it wanted to receive billions of dollars in aid.

Here is your 10th scorecard for this big story

  1. The IMF after the successful ninth review of the Pakistani economy will provide more than $1.1 billion. This will also pave the way for bilateral loans from other countries and institutions. The IMF wants Pakistan to take measures to increase government revenue.

  2. The IMF will share nine panels on the financial and macroeconomic framework with the Pakistani authorities. If an agreement is reached by February 9, they will sign an employee-level agreement.

  3. Pakistan will have to make some tough decisions to ensure the IMF is satisfied with its handling of the economic crisis before global lenders can comfortably send money.

  4. The IMF hopes Pakistan will take steps to fill a major financial hole, The News International reported, citing unnamed sources.

  5. One proposal is to increase the petrol tax by 20-30 rupees a liter. This will push the current 50 rupee note to 70-80 rupees, the newspaper reported.

  6. Another consideration is to charge a 17% Goods and Services Tax (GST) on petroleum products, oils and lubricants (POL). “…Or increase the GST rate by 1% from 17 to 18% through a presidential decree,” the newspaper cited unnamed sources.

  7. Pakistan may consider raising the federal excise tax rate on sugary drinks to 17% from 13% through a small budget.

  8. The Federal Revenue Council of Pakistan has proposed to increase the excise tax on cigarettes.

  9. The Revenue Department requested information on the assets of “public servants” from BS-17 to BS-22 levels. This information will be shared between the Federal Revenue Board and the banks. BS-17 to BS-22 have relatively higher salaries then rank below them.

  10. Pakistan’s central bank said on Friday that the country’s foreign exchange reserves fell 16.1% to $3.09 billion at the end of the financial week, the lowest level in nearly 10 years.

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