Poor Pakistan currently has no other option but to accept the conditions of the IMF. Read here what can happen after taking IMF funds…
Economic Crisis battling with Pakistan Now IMF That is, he has been forced to take a loan from the International Monetary Fund. Despite all the protests across the country, Pakistan has no other option left at the moment. prime minister of pakistan shehbaz sharif Has said that IMF has put very difficult conditions in front of him. Pakistan needs several billion rupees as aid from the IMF to improve its economic condition.
Read here 10 big points of IMF’s Tough Conditions-
- IMF has done the ninth successful review of Pakistan and now it is ready to give $ 1.1 billion i.e. about 9 thousand crore rupees to Pakistan. It will also pave the way for bilateral loans from other countries and institutions. IMF wants Pakistan to take measures to increase government revenue.
- IMF will share nine tables on macroeconomic and financial framework with Pakistani officials. If they reach an agreement by February 9, they will sign a staff-level agreement.
- Pakistan will have to make some difficult decisions to ensure that the IMF is satisfied with the country’s handling of its economic crisis before the global lender can ease sending funds.
- The News International newspaper quoted sources as saying that the IMF expects Pakistan to take steps to fill the fiscal gap on a large scale.
- There is a proposal to increase petroleum by Rs 20-30 per litre. The newspaper told that it can increase the current Rs 50 to Rs 70-80.
- Another idea is to levy 17 per cent Goods and Services Tax (GST) on petroleum, oil and lubricant (POL) products. “… or increase the GST rate by 1 percent from 17 percent to 18 percent through a Presidential Ordinance.” The newspaper has given this information by quoting unknown sources.
- Pakistan may consider increasing the federal excise duty rate on sugary beverages from 13 percent to 17 percent through the short budget.
- Pakistan’s Federal Board of Revenue has suggested increasing the excise duty on cigarettes.
- The Board of Revenue has sought information on properties of “civil servants” from BS-17 to BS-22 grades. This information will be shared between the Federal Board of Revenue and banks. BS-17 to BS-22 have relatively higher pay as compared to the grade below them.
- Pakistan’s central bank said on Friday that its foreign exchange reserves declined by 16.1 percent to $3.09 billion at the end of the last fiscal week, the lowest in nearly 10 years.
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