Pakistan: IMF forces govt for BIG increase in tax rates as Pakistani population starves

Islamabad: As Pakistan sinks deeper into a spiralling economic crisis, the tough conditions required for a much-needed financial bailout by the International Monetary Fund (IMF) has forced the PM Shehbaz Sharif led ruling coalition to impose higher tax rates that has increased the already heavy burden on the Pakistani population. At present, Pakistan has not succeeded in convincing the International Monetary Fund (IMF) for a loan although negotiations continue with the global financial body. The meeting that took place on Thursday for the bailout package ended without reaching any conclusion. A statement was also issued by the IMF after this meeting. On the other hand, Pakistan’s Finance Minister Ishaq Dar has said that the talks with the IMF have ended on a positive note. Along with this, Dar announced that taxes worth $170 billion would also be imposed by the government. These new taxes will be introduced through the mini budget. Its purpose is to revive the bailout package.

Pakistan government blames Imran Khan

While talking to the media, Dar said that the Pakistan government has received the draft Memorandum of Economic and Financial Policies (MEFP) from the IMF. Ishaq Dar reminded that the taxes that will be implemented by the government have the signature of former Pakistan PM Imran Khan. He said that till the year 2019-2020, when Imran was negotiating with the IMF, he had agreed to this at the same time. He also reiterated that Shehbaz Sharif’s government is holding talks with the IMF as a sovereign commitment. “This is an old agreement that was first suspended and then delayed,” Dar said.

Talks between Pakistan, IMF lasted 10 days

Ishaq Dar said that the talks with the IMF mission went on for 10 days. During this, there has been talk of energy and gas sector as well as the fiscal and monetary aspects. Ishaq Dar said that State Bank of Pakistan, officials of different departments and ministers were also involved in the talks. If Pakistan’s Finance Minister Ishaq Dar is to be believed, the tax of Rs 170 will be achieved in the first four months of this financial year. Dar informed that energy sector reforms will be implemented. Along with this, it will be emphasized that how the flow of circular loan is happening.

Higher taxes good for Pakistan: Ishaq Dar

Ishaq Dar claimed that the reforms proposed by the IMF are in Pakistan’s favour. Dar said that Pakistan needs these reforms. He also said that Pakistan Prime Minister Shehbaz Sharif has assured the IMF that these reforms will be implemented soon. The draft has been handed over to the government on Friday morning. Now there is another virtual meeting between Pakistan and the IMF scheduled on Monday. Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.