Pakistan is in intense pressure of IMF
Pakistan is in intense pressure of IMF
ISLAMABAD: Pakistan is under intense pressure from the International Monetary Fund (IMF) to set tough targets in the next budget.
Sources said that the IMF wants Rs 5100 billion in tax collections for the next financial year and the loan program will not be resumed if the budget targets are not set as per the IMF terms.
“IMF’s demand for 11% interest rate is worsening the economic scenario.”
Sources said that the IMF demanded that the budget deficit should be fixed at zero point four percent of GDP while Rs 2700 billion to be allocated for interest and debt repayment.
According to sources, new taxes of Rs 800 billion will have to be levied to achieve the target of Rs 5,100 billion at the request of the IMF.
Sources said that the Finance Ministry has refrained from taking any decision regarding the IMF budget targets and instead of taking responsibility itself, the Finance Ministry wants all the targets to be set by the Prime Minister.
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