Islamabad: The International Monetary Fund (IMF) has proposed a tax target of over Rs 15 trillion in its next budget, as reported by sources cited by Ary News. According to sources mentioned by Ary News, virtual negotiations are being held between the IMF and Pakistan, with 85% of the discussions successfully completed. The focus of the negotiations is to finalize the details of the next budget, which is expected to be presented in the National Assembly soon.
According to Ary News, the new budget is expected to increase the tax-to-GDP ratio to 13% and collect non-tax revenue of Rs 2.745 crore. The government also expects economic growth to exceed 4% in the next fiscal year, driven by increased investment and consumption. Earlier, the International Monetary Fund urged Pakistan’s Special Investment Promotion Commission (SIFC) to avoid tax exemptions from international investment projects, including the Chaghi-gwadar railway track project, worth US$2 billion.
According to sources mentioned by Ary News, the IMF delegation insisted that tax exemptions for international investment would hinder the generation of revenue in the country. According to Pakistani media, the government has asked Gulf countries to invest in the Chaghi-Gwadar railway track project, but the International Monetary Fund refuses to grant SIFC tax exemption to the SIFC.
It is worth noting that SIFC has been providing a platform for investment and promoting the transportation of minerals from Reko Diq to Gwadar through the new railway line. Ary News said the IMF delegation was introduced to the IMF delegation, and officials said a platform was being provided to promote investment and a new railway line would be built to transport minerals from Reko Diq to Gwadar.
At the same time, Pakistan and the International Monetary Fund negotiated multiple aspects such as climate financing, electric vehicle charging stations and tariff adjustments.
