IMF and Shahbaz Sharif
– Photo: ANI
Expansion
The International Monetary Fund (IMF) has identified some major problems in the implementation of the seven billion dollar loan package given to Pakistan. The IMF expressed concern over the decline in Pakistan's tax revenue and the delay in receiving foreign loans.
IMF said that Pakistan's Tax Department (FBR) is not working properly and there is a delay in getting foreign loans to Pakistan. The UN financial agency said that Pakistan should negotiate with Saudi Arabia on deferred payment on oil and requested China to reset the loan deadline.
Agricultural income tax law is also a problem in Punjab
The IMF also expressed concern over the new agricultural income tax law of the Punjab Government, as this law is not in accordance with the IMF agreement. The Punjab government had planned to increase agricultural income tax rates. But it could not achieve its goal. The IMF asked the Punjab and Sindh government to fix it.
Energy Sector Challenges
IMF also expressed concern over the delay in privatization of Pakistan's energy sector i.e. power distribution companies. Apart from this, the IMF has asked for regular reporting of circular debt in the gas and energy sector. IMF asked Pakistan to reduce government interference in its economy and promote competition. IMF believes that this will bring more private investment to Pakistan and strengthen its economy.
What does IMF expect from Pakistan
The IMF asked Pakistan to improve its economic policies, strengthen the tax system and also give more social responsibilities to the provinces. Along with this, IMF advised that Pakistan should make more foreign trade agreements, especially with India and America.
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