IMF mission exits Pakistan after holding final round of talks
Pakistan expects ‘favourable recommendation’ for unlocking $1 billion tranche: Mission satisfied with agri income tax implementation: Wants track and trace system be made more effective
Satisfied with the legislation regarding agriculture income tax, the International Monetary Fund (IMF) mission will leave Pakistan today after as they held final round of talks with the government officials, reported 24NewsHD TV channel, quoting its sources.
The IMF team, led by Nathan Porter, held talks with the finance minister in Islamabad. The IMF officials agreed to continue coordination for further improvement in Pakistan’s economy.
According to the sources, the IMF mission will issue a statement at the conclusion of their two-week visit and is expected to put forward “favourable recommendation” regarding unlocking the second loan tranche despite reservations on the performance of three Pakistan sectors.
Online contacts will be revived for further talks between the IMF and the Pakistani government, the sources said.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb had held an Iftar-dinner in hours of the visiting IMF delegation in Islamabad on Thursday night.
The sources further divulged that the IMF team has demanded improving tax collection in a number of sectors including from retailers, dealers and real estate.
The IMF also sought completion of privatization process of power distribution companies (Discos) and Pakistan International Airlines (PIA) by June this year.
The sources further said the Federal Board of Revenue (FBR) had forwarded the proposal to cut the tax rate on real estate in property sector, arguing the move is aimed at stemming the capital flight abroad.
The FBR also assured the IMF in writing that the drive for the registration of the traders will continue.
In response to FBR proposals, the IMF has insisted that tax evasion can be avoided by making point of sale, and track and trace system more effective.
Following the completion of the ongoing discussions, the IMF staff will finalize its recommendations for the Executive Board’s review, a prerequisite for Board approval for the release of the one billion dollar tranche.
Reporter Waqas Azeem