Islamabad [Pakistan], March 22 : The International Monetary Fund (IMF) has proposed a tax target of over Rupees 15 trillion for Pakistan in the next budget, as reported by ARY News citing sources.
As per the sources referred to by ARY News, the IMF and Pakistan are holding virtual talks, with 85 per cent of the discussions being completed successfully. The talks are focused on finalising the details of the next budget, which is expected to be presented in the National Assembly soon.
According to ARY News, the new budget is expected to increase the tax-to-GDP ratio to 13 per cent and collect Rs 2,745 billion in non-tax revenue. The government is also expecting the economy to grow by over 4 per cent in the next fiscal year, driven by increased investment and consumption.
Previously, the IMF had urged Pakistan's Special Investment Facilitation Council (SIFC) to refrain from granting tax exemptions to international investment projects, including the Chaghi-Gwadar railway track project worth USD 2 billion.
According to sources referred to by ARY News, the IMF delegation maintained that tax exemptions for international investments would hinder the country's revenue generation.
As per Pakistani media, the government had requested Gulf countries to invest in the Chaghi-Gwadar railway track project, but the IMF has refused to grant tax exemptions to the SIFC for international investments.
Notably, the SIFC has been providing a platform for investment and facilitating the transportation of minerals from Reko Diq to Gwadar through a new railway line.
Briefing the IMF delegation, officials stated that a platform is being provided to facilitate investment, and a new railway line will be constructed to transport minerals from Reko Diq to Gwadar, Ary News said.
Meanwhile, Pakistan and the IMF are engaged in negotiations on several aspects such as climate financing, electric vehicle charging stations and tariff adjustments amongst other issues.
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