The International Monetary Fund (IMF) on Saturday expressed satisfaction with the economic performance of the federal and provincial governments following virtual negotiations with provincial authorities.
According to sources, the IMF delegation demanded that provinces should impose income tax on agricultural income in the upcoming budget while asking the provinces to generate funds on their own for development projects.
Provincial governments, including those of Khyber Pakhtunkhwa and Balochistan, were told that there will be no exemptions on collecting income tax on agricultural income in the new budget.
Provinces should end their dependence on the federal government for expenditures related to development projects.
Sources further said that the IMF was satisfied with the economic performance of both the federal and provincial governments.
Besides, the provinces have assured the IMF of a surplus in the next fiscal year.