Islamabad: The Ministry of Finance confirmed on Thursday that as the government prepares for the adoption of the mini budget, the sixth review of the expansion fund will be submitted to the International Monetary Fund (IMF) Executive Committee on January 12.
Officials from the finance ministry said Pakistan will fulfill the condition imposed by the IMF as prior action before the date set to present the review.
They said that a tax exemption of Rs350 billion will be withdrawn through the mini-budget. The SBP’s Autonomy Bill, meanwhile, will also be passed through parliamentary approval, the officials added.
After the staff of the International Monetary Fund rejected the government’s proposal to submit a budget through a presidential decree, the government recently temporarily retracted a small budget from the federal cabinet, including the tax law (fourth) amendment bill.
The IMF has demanded Pakistani authorities seek parliamentary approval for the passage of the Tax Laws (Fourth) Amendment Bill and SBP’s Autonomy Bill.
A report published by The News stated that officials, who represented the Pakistan government in the talks, said that the IMF imposed a condition that Pakistan seeks parliament approval as prior actions before placing its request for completion of the sixth review and release of $1 billion tranche before the Fund’s Executive Board.
Later this week, the government will submit a mini-budget of 360 billion rupees to the parliament to eliminate the general sales tax (GST) exemption and impose a standard tax rate of 17% on imports of basic consumer goods and industrial products.