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HomeBusinessThe government's strategy for revitalizing the IMF program is readyTAZAA News

The government’s strategy for revitalizing the IMF program is readyTAZAA News

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ISLAMABAD (Quadrat Daily) According to a report by Mehtab Haider in Daily Jang newspaper, it has been revealed that instead of any economic reasons, political considerations are cited as the main driving force behind “unhappiness” at the highest level. developed a strategy to eliminate the impasse and call for decisive measures to revive the IMF program.

Prime Minister Shehbaz Sharif will now have to decide on tough measures, mainly through an increase in indirect taxes and withholding tax of Rs 300-400 billion or the full price of electricity at Rs 7.50 per unit and 7.50 Rs per unit. 50 to 60 percent of related costs are quickly passed on to consumers. Top government sources confirmed the frustration of top politicians as they failed to implement the strategy, associated costs and IMF guidelines. that the cost of adjustment will increase every day. They can be shown the door after making tough decisions by increasing utility rates and additional taxes.

Political instability has become a major obstacle in decision-making, because the current government does not know that if it takes tough decisions under the IMF program, it will cost political capital, and then the country will go to the next general election. So what will happen. ?

Therefore, the ruling coalition is completely confused and has entered a state of instability. The IMF has not been able to start the reform process and implement the structural reforms demanded by the Pakistani authorities. Because of the concern. As the revolving credit monster crosses Rs 4 trillion, the government will be forced to hike electricity tariffs by Rs 7.30 per unit.

Gas prices should be increased to clear the revolving debt, which has reached 1640 billion rupees. This will be offset by increased profits for the two energy giants and subsequent rate hikes. The IMF has expressed its concern over the FBI’s tax collection target of Rs 7,470 billion on the back of a drop in imports under the Petroleum Development Levy (PDL) and a shortfall of Rs 855 billion.

The IMF has asked Islamabad to impose an additional tax of 400 billion rupees in the micro-budget, which would be more than the annual fiscal measures in the budget, when the government imposed an additional tax of 250 billion rupees. to collect 175 to 200 billion rupees. in the remaining period of this financial year.

Additional revenue measures can only be achieved by increasing indirect taxes and withholding taxes, sources said. Further, sources said that an additional 60 billion rupees is proposed to be collected from flood tax in the range of 1 to 3 percent. be done The government is considering a tax levy of 60 to 70 percent of the profits made by banks through alleged currency manipulation.

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