ISLAMABAD: The policy level talks between Pakistan and the International Monetary Fund (IMF) have started and would continue for next three days for 10th Review of extended fund facility (EFF) program in Dubai.
The economic indicators are leading the country to a stage of irreversible financial stability and for consolidation of gains made so far” an official source at the Federal Board of Revenue (FBR) told Customs Today on Tuesday.
Therefore, a keen interest of the International Monetary Fund (IMF) and World Bank (WB) in the future plans of the FBR to broaden tax net as well as to increase the volume of revenue collection, forced the FBR team to hold extensive review of documents with the IMF negotiation team.
IMF sought more details about the future plans of the taxing authority to enhance the tax. In this regard FBR team shared data and information along with comparisons of withholding tax and custom duty collection with between the current fiscal and previous years.
Due course of discussions IMF remained focused on those areas in which FBR had assured to increase tax collection in the previous meetings. The host organization was further informed about the details of more than one lakh notices had been issued to new potential taxpayers as well as information about sectors and heads with higher and lower tax collections.
It is pertinent to note here that Pakistan entered into an extended fund facility (EFF) program with IMF on September 4, 2013. EFF Pakistan program is a 36-month extended arrangement under the EFF for $6.64 billion, 425 percent of quota.
First tranche of $544.5 million, 34.8 percent of quota became available on September 6 2013, and the remainder will be evenly phased thereafter subject to quarterly reviews.
Moreover, the objective of the meetings is to review progress achieved by Pakistan on economic reform agenda agreed in the extended fund facility (EFF) program with IMF.
It is a 36-month extended arrangement under the Extended Fund Facility (EFF) for $ 6.64 billion. An Extended Fund Facility with IMF provides assistance in support of comprehensive programs that include policies of the scope and character required to correct structural imbalances over an extended period.
