Last Updated on: 26th June 2023, 01:10 am
Federal Govt Informs The IMF That It Has Complied With All Previous Measures
The federal government has given assurances to the International Monetary Fund (IMF) that it is committed to taking the five most important initial measures needed to guarantee the lending program.
In the Letter of Intent (LoI) addressed to the IMF, the federal government stated that it had approved the fiscal year 2023 (FY23) budget and initiated income tax reform (PIT) in line with the Fund’s guidance.
In addition, the demand for the signing of memoranda of understanding (MoU) to achieve fiscal goals was met with the signing between the federal and state governments in July.
The actions taken so far include the main demand for the withdrawal of the February bailout plan announced by the previous government. As part of the package’s cancellation, general fuel subsidies of Rs 5/Kwh were removed and a Petroleum Development Levy (PDL) of Rs 10 per liter was levied on petrol, while a levy of Rs 5 per liter was imposed on petrol. Diesel on July 1st.
Also Read: Pakistan Seeks Help From US To Negotiate Deal With IMF
To further reassure the IMF, the government stuck to the policy and also increased the PDL for petrol and diesel by Rs 10 and Rs 5 respectively on 1st August. The government has promised to increase the PDL by the same rate on the 1st of September increase and continue increasing the tax monthly on both fuels until it reaches 50 rupees per liter.
Arrangements have also been made for the establishment of Debt Management Offices (DMOs) to meet all of the above measures.
Also Read: IMF Says Pakistan’s Debt Will Increase To Over 78% Of GDP
