ISLAMABAD: International Monetary Fund (IMF) in fresh contact with Pakistan has demanded to slash expenditures of federal and provincial governments, quoting sources.

IMF in pre-budget talks has also demanded to fix tax revenue target above Rs 10,000 billion, according to sources. In virtual talks Pakistan has convinced lender to move talks ahead and also requested about staff level agreement, sources said.

“IMF intending joint 9th and 10th review of loan package, but Pakistan wants completing 9th review of bailout package separately”. Current session of talks could not achieve any major progress, sources said. According to sources, sides also discussed budget figures as monetary fund advanced its demand to enhance FBR tax collection to 10,000 billion rupees. It also demanded steps to increase recovery of Income Tax.

Pakistani negotiators assured lender of fixing FBR taxation target at 9,200 billion in budget. IMF team also demanded major cut in expenditures of federal and provincial governments and pressed for limiting expenses and subsidy in next fiscal year’s budget, sources said.

Published in The Daily National Courier, June, 07 2023

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