By Staff Reporter
ISLAMABAD: Finance Minister Ishaq Dar said the government won’t impose any new taxes on the agriculture and construction industries, dismissing media reports that suggested otherwise.
Dar told the National Assembly on Friday that there was no truth to the rumors that the International Monetary Fund (IMF) had demanded new taxes on these sectors as part of a $3 billion loan agreement signed last month.
He said the government had already taken the necessary steps to meet the IMF’s conditions and secure the funding.
“I am giving a categoric statement here that not even a single new tax will be applied, neither on agriculture nor on construction [and] real estate [sectors],” Dar said. “We have not agreed to any new taxation measures with the IMF… We have delivered on all prior actions.”
He later repeated his assurance on Twitter.
“All the commitments made with the IMF are on the finance ministry’s website,” Dar said. He also presented documents related to the IMF deal to parliament and said they would be available online.
Pakistan received the first tranche of $1 billion from the IMF this week, after the lender’s board approved a stand-by arrangement to help the country cope with external and fiscal pressures.
The deal came after the government revised its budget for the fiscal year 2024, raising taxes by Rs215 billion rupees and cutting spending by Rs85 billion.
The IMF loan, which is part of a nine-month stand-by arrangement, will provide some breathing space for Pakistan as it seeks to revive growth and attract more foreign investment. The loan is also expected to unlock more funding from other multilateral lenders and bilateral partners.
Dar said the government opted for a new program instead of completing the previous one, which expired on June 30, to avoid losing $1.4 billion that was due in the next two reviews.
He said the government also negotiated for a higher amount of $3.5 billion but settled for $3 billion.
The minister said the short duration of the program was designed to give the next government, which will be elected in 2024, the freedom to decide its own economic policies.
Dar said the government had received additional support from Saudi Arabia and the United Arab Emirates, which provided $2 billion and $1 billion respectively earlier this month. He expressed hope that inflation would ease as a result of the government’s measures.
Copyright © 2021 Independent Pakistan | All rights reserved
