Pakistan’s economic team has made progress on several issues in detailed negotiations with the International Monetary Fund (IMF) mission.
According to sources, Kisan package in energy sector, Balochistan is ready to maintain subsidy on tube well and AJK while energy subsidy to exporters will end.
Sources said that there is still disagreement on the shortfall in revenues, the IMF believes that the shortfall of revenues is 840 billion rupees, according to the Pakistani authorities, the shortfall will be 400 to 450 billion rupees.
According to Finance Ministry officials, measures have also been suggested for revenue shortfalls, PSDP and expenditure cuts.
Officials said that the IMF has recommended GST from 17 to 18 percent, flood levy and bank profits will also be taxed.
Sources claimed that talks are underway to remove certain exemptions from GST and Income Tax.
According to the officials of the Ministry of Finance, the issues with the IMF will be settled by May 9, and the discussion on the Medium Turn Budgetary Framework will start from February.
Officials said that the IMF has not imposed any conditions on Imran Khan to sign the agreement, and has started work on structural reforms in the energy sector.
Sources said that the technical talks in the energy sector will continue till Monday.
