- Sources say that policy-level talks are close to success.
- Windfall tax will be imposed for the financial year 2021, 2022.
- IMF, economic team can prepare MEFP today.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said a review of policy talks with Pakistan is expected within this week.
“I expect the review to be agreed upon within this week. Any day now,” the global lender’s chief said. bloomberg Assuring the anchor on Wednesday that the agreement was very “close”, as Pakistan moves closer to successful policy-level talks with the IMF.
“Pakistani officials and the finance minister deserve to be congratulated for sticking to their agenda in very difficult times,” the IMF chief said.
He further said that the big issue in Pakistan is tax collection. “The country collects 12% of GDP in taxes today. We are saying.” [that] To maintain the functioning of your economy, it needs to be at least 15% to get revenue.”
“So, please, collect it from those who can pay taxes in Pakistan,” he said.
Meanwhile, officials with knowledge of the ongoing talks between Pakistan and the IMF mission said geo news, Islamabad agreed to impose a 40% windfall tax on banking sector profits under the terms of the global lender to secure the second tranche for a staff-level settlement under a $3 billion standby arrangement, the sources said on condition of anonymity. Has gone. SBA).
Sources said that the IMF mission led by Nathan Porter and the Pakistani economic team have also completed discussions on all areas.
The Pakistani delegation was led by acting Finance Minister Shamshad Akhtar and included State Bank of Pakistan (SBP) Governor Jamil Ahmed, Federal Board of Revenue (FBR) Chairman Malik Amjad Zubair Tiwan and officials from the Finance and Energy ministries.
Sources further said that a windfall tax of up to Rs 55 billion will be imposed for financial years 2021 and 2022. Tax on profits earned by banks will be collected in the month of December.
According to Finance Ministry sources, there is no need for any amendment in the Finance Bill to impose windfall tax on the banking sector.
“However, the windfall tax will require approval from the federal cabinet,” sources said.
Besides, the IMF delegation and economic team are likely to draft the Memorandum of Economic and Financial Policies (MEFP) today, sources said.
Sources in the Finance Ministry said that the parties have also agreed not to increase the interest rate further.