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Government May Renegotiate IMF Deal

Federal Finance Minister Shaukat Tarin has hinted at renegotiating a deal with the International Monetary Fund (IMF) and said the institution is unfair to Pakistan, according to a local media report.

Read More: IMF Support Likely by March 24

The report claims that Tarin said the IMF’s request to raise electricity prices was unreasonable and argued that the price increases would only increase corruption in the country, adding that he was trying to convince the IMF that Tax increases will cause inflation.

The minister also warned that if GDP growth does not reach at least 5%, the country will face a serious crisis in the next 4 years.

Read More: Government to Offer RS 7.8 Billion Ramazan Relief Package

During an online meeting with the Federation of Pakistani Chambers of Commerce and Industry (FPCCI), Tarin highly appreciated the budget proposal presented by the Traders and Industrialists representatives.

He said that there is still much work to be done and the measures must be radical and lasting incremental changes in consultation with the business community. Shaukat Tarin assured the FPCCI that he would advise the Federal Board of Revenue (FBR) to quickly begin the consultation process with the FPCCI on tax breaks to accelerate growth and improve tax revenue.  

Read More: FPCCI Pursues 100 Percent Adjustment of Input Tax

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