IMF Urges To Impose New Tax Measures Worth Rs 170 billion, Ishaq Dar

Addressing a press conference in Islamabad, Finance Minister Ishaq Dar said that $1.2 billion is expected to be received from the IMF review. He said that the IMF will issue a letter of intent. After the deal, the IMF board will approve the next tranche of $1 billion.

Although we have refused to impose GST on petroleum, we will collect full PDL on petroleum products. The diesel levy will be increased by Rs 10 and It will further increase by Rs 5 in March and Rs 5 in April.

Ishaq Dar said that the IMF asked us to impose a sales tax on petrol, which we did not accept. It has been assured that there will be no further increase in the circular date of gas. Also, there will be another online meeting with the IMF on Monday. 

Prime Minister Shahbaz Sharif has assured the implementation of the IMF program. The final round ended yesterday with all matters being settled. Also, we have made huge payments. Two billion has been paid to one country while one billion dollars has been paid to one country. 

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He said that the circular debt in the gas sector has to be stopped. The subsidy will continue for electricity consumers using up to 300 units. Reforms in the energy sector will continue. The expenditure in the power sector is 3000 billion while the recovery is 1800 billion. We need reforms and a reduction of electricity and gas losses.

Discussions are underway with friendly countries for the privatization of Haveli Bahadur Shah and Baloki power plants. This way foreign exchange reserves will be increased. 

The previous government deviated from the IMF agreements. Loans have increased by 70%. Incompetent people were responsible for the poor economy. Reforms are painful but we will do it. External financing and privatization also help to speed up the work.

The Finance Minister further added that new tax measures worth Rs 170 billion have been agreed upon with the IMF. Comprehensive guidelines for reforms and economic recovery have been agreed upon with the IMF.