IMF advises Punjab to cut expenditures, maintain pension policy
Shows satisfaction with Punjab govt’s performance: 'Rejects' winter relief package of federal govt extension for industry and agriculture: Pak officials brief IMF mission to borrow Rs 1250bn on 10.8 interest rate for energy debt: Proposes to ease tax burden on salaried class and lower taxes on properties: Plans to collect Rs250bn tax from retailers and businesses
A key meeting between the International Monetary Fund (IMF) delegation and the Punjab government took place to review the implementation of IMF-issued guidelines, reported 24NewsHD TV Channel on Friday.
According to the report, the IMF expressed satisfaction over Punjab’s financial measures but advised the provincial government to cut unnecessary expenditures and continue the pension policy as part of ongoing economic reforms.
Sources confirm that the IMF closely examined Punjab’s fiscal strategies and urged authorities to ensure financial discipline to maintain economic stability. The meeting signals Punjab’s commitment to IMF recommendations as discussions continue to shape the province’s financial future.
In a separate meeting with the federal government officials, the IMF rejected Pakistan’s request to extend the winter relief package for industrial and agricultural sectors for the entire fiscal year, dealing a setback to businesses hoping for continued energy cost relief.
During the negotiations on Friday, Pakistan briefed the IMF on strategies to reduce circular debt in the energy sector. The government plans to borrow Rs 1,250 billion from commercial banks at a 10.8% interest rate to curb rising debt levels.
Pakistan and the International Monetary Fund (IMF) held economic review talks separately, where the government proposed reducing the tax burden on the salaried class in the upcoming budget.
The sources said Pakistani officials also suggested lowering taxes on the real estate, property, beverage, and tobacco sectors to stimulate economic growth in the Pak-IMF talks.
The sources said any tax relief will be implemented only after the IMF's approval, while the government has devised a plan to collect Rs 250 billion in taxes from retailers and various other sectors.
The authorities intend to use trader-friendly schemes and compliance risk management to boost tax revenue, with final decisions awaiting the IMF's green light.
Reporter: Waqas Azeem