Daily Times

The talks between Pakistan and the International Monetary Fund (IMF) over a sixth review of the $6 billion loan programme remained inconclusive.
Finance Minister Shaukat Tarin confirmed that the talks with the Fund over the sixth economic review remained inconclusive. He said the government cannot put burden on the poor, adding talks with the International Monetary Fund (IMF) would continue. Tarin said the Fund would again review Pakistan’s economic performance over the next two to three months in September.

Pakistan and the IMF are working to bridge their differences over quantum of new taxation measures amid the government’s willingness to increase sales tax rate on fertiliser to 10% and slap 17% tax on import of crude oil to generate Rs115 billion. The sources said if the issues could not be settled at the level of Finance Minister Shaukat Tarin and IMF’s Mission Chief Ernesto Rigo, Prime Minister Imran Khan may talk to IMF Managing Director Christalina Georgieva this week.

The key difference between the two sides is the taxation measures that Pakistan has to take to achieve next fiscal year’s tax target of Rs5.829 trillion. Without additional taxation measures, Pakistan will reach Rs5.3 trillion and the IMF wants that the rest of the gap should be filled with additional revenue measures.