“IMF Will Not Dictate Pakistan to Impose New Taxes”
IMF representative said that it was up to Pakistan’s government how it dealt with challenges posed by the pandemic virus
“It is the discretion of Pakistan to impose new taxes or increase the number of taxpayers and International Monetary Fund (IMF) will not dictate the country on it”.
This was said by IMF Country Representative Teresa Daban Sanchez as she addressed a webinar at the Sustainable Development Policy Institute (SDPI).
She said that Pakistan could get additional funding to combat the third wave of coronavirus.
Besides this, deferment of repayments of loans lent by G-20 countries could not be ruled out as well.
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However, for this purpose, Pakistan’s government will have to devise a strategy, she added.
IMF representative said that it was up to Pakistan’s government how it dealt with challenges posed by the pandemic virus.
She said that it was the discretion of the government and parliament to impose new taxes to cover up expenses amid the pandemic situation. She assured that IMF would not dictate Pakistan in this regard.
However, Sanchez noted that the number of taxpayers in a country of 220 million people was merely 2 million.
She emphasized the need for revoking tax exemptions. IMF representative said Pakistan must increase its tax income and cull its evasion.
The representative said that the stability in the exchange rate in the monetary policy was vital.
Debts and government guarantees in Pakistan have climbed to 92.8% of the economy, she told.
The official expressed that the local currency must get stability against US dollar while durability in foreign exchange reserves was also important for Pakistan.
Sanchez said that Pakistan would have to make reforms in the energy sector according to the understanding with IMF and make increments in power tariff. She emphasized on effective management of circular debt as well.
IMF representative said that Pakistan was implementing FATF’s but its pace was slowed down due to the coronavirus situation.
She hoped that all targets would be met by June 2021 deadline.
However, Sanchez suggested Pakistan must take robust measures to curb money laundering.
