No chance of Pakistan of seeking extension of IMF standby pact: Shamshad

ISLAMABAD: Caretaker Finance Minister Dr Shamshad Akhtar on Thursday categorically refuted reports of Pakistan requesting the International Monetary Fund (IMF) to either extend the timeframe of the standby agreement it had reached with it from March to June 2024 or
increase its volume from $3 billion to either $3.5.
She said that staff-level talks between the two sides, which have been in progress since November 2, will finish on November 15.
On the other hand, experts have said that the government may heave a sigh of relief if the interest rate comes down, especially in the USA, and petroleum prices also drop in the global market.
Otherwise, they have said, foreign financing could become a big threat for Pakistan.
Caretaker finance minister and the IMF’s Mission Chief Nathan Porter held talks this week, both along with their delegations as well as behind closed doors.
Meanwhile, the International Monetary Fund (IMF) has demanded ‘do more’ from Pakistan over tax recovery.
International lender has demanded more recovery of income tax from retailers and real estate sectors, while increasing income tax recovery on agriculture income, sources said.
IMF has urged federal government and provinces to take joint efforts for taxes recovery. “A fixed tax on retailers can be imposed after December in case of shortfall in tax collection,” sources said.
The FBR has been empowered to introduce a scheme for imposition of tax on retailers. The IMF has also demanded consultation with provinces for imposing tax on agriculture and real estate sectors.
The IMF mission has also extended proposals to the FBR for amendments in tax policy and addressing flaws in taxation.
The monetary fund has suggested an effective taxation policy and enforcement in sectors with lesser tax recovery, sources said. The FBR has provided the revenue projection report till the end of current fiscal year to the IMF team.
The IMF mission will respond over the revenue projection report till Saturday, sources at the FBR said. The Federal Board of Revenue (FBR) has also briefed the IMF about the task force on the tax policy and tax administration.
Pakistan has agreed with the IMF to share the data of the tax evaders with the help of FBR, banks and NADRA, to improve tax collection.
The agreement was reportedly reached during policy review talks between the IMF officials and Pakistan to release a $700 million loan tranche under the Standby Agreement (SBA).
Meanwhile, the International Monetary Fund (IMF) has demanded Pakistan impose tax on retail, real estate and agriculture sectors.
This has been revealed during the ongoing technical-level talks between Pakistan’s economic team and a visiting delegation of the IMF.
During the negotiations, further demands put forward by the IMF have emerged.
According to the Federal Board of Revenue (FBR), in case of a shortfall, a fixed tax could be imposed on retailers. The FBR may exercise its powers to levy retail tax after December.
The World Bank says there is room for the collection of Rs3 trillion in annual taxes from agriculture and real estate sectors.
The bureau said that it was necessary to consult the provinces over imposition of taxes on the agriculture sector. The IMF has also called for a tightening of enforcement for real estate taxes.
The global lender has also suggested effective enforcement of the tax policy in sectors where collection was low.- NNI