Pakistan-IMF talks to resume on bailout

ISLAMABAD: talks between Pakistan and IMF will resume after formation of new coalition government led by PM Shahbaz Sharif presented a tax-heavy budget for 2022-23 as the cash-strapped nation, reeling from its worst economic crisis, hoped to revive a $6 billion bailout by the global lender.
According to the Ministry of Finance, the IMF will hand over a policy framework to Islamabad in the coming days. Minister of Finances Miftah Ismail and the Governor of the State Bank of Pakistan will sign the contract on behalf of Pakistan. Sources said Pakistan had asked the IMF to expand the package from $6 billion to $8 billion.
The latest round of talks between Pakistan and the IMF concluded last month.
Pakistan has adjusted its budget for the next financial year to meet IMF bailout targets – doubling fuel prices, scrapping energy and fuel subsidies and increasing sales tax on produce by 11%. tankers from July 1. These are drastic measures demanded by the IMF.
The government has agreed to raise the tax collection target from Rs 7,005 billion to Rs 7,450 billion, customs collection from Rs 950 billion to Rs 1,005 billion, collection of general sales tax (TPS) from Rs 3,008 billion to Rs 3,300 billion. The income tax collection target has been set at Rs 55 billion.
The government also imposed a 10% super tax on 13 major industries: cement, sugar, steel, oil and gas, RLNG terminal, textile, banking, automotive, tobacco, fertilizer, aviation, chemicals and beverages.

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