ISLAMABAD: The talks between Pakistan and the International Monetary Fund (IMF) have ended successfully. According to the agreement, the IMF will release the next tranche of $518 million by end of March.
Pakistan while reiterating that there would be no change in gas and electricity prices, requested the IMF for Rs. 150 billion for implementation of the National Action Plan (NAP) as well as repatriation of Internally Displaced Persons (IDPs), to which the IMF agreed.
It is expected that the fiscal deficit will increase from 4.9 percent to 5 percent.
Also agreed upon was Rs.60 billion in tax cuts for Pakistan, while it was decided that the target for tax cuts should reach Rs. 2750 million by June.
Due to the price reduction of petrol in the country, the tax revenue could decrease to Rs. 68 billion, hence Rs. 28 billion will be collected in sales tax.
Addressing a press conference following the talks in Dubai, Federal Finance Minister Ishaq Dar said that Pakistan’s foreign exchange reserves have increased to over $15 billion, entitling the country to receive subsidised loans.
