LAHORE, Nov 03 (NNI): The Federal Board of Revenue (FBR) has assured the
International Monetary Fund (IMF) mission visiting Pakistan of not
introducing ‘any new tax amnesty scheme’ as talks underway for the next
installment of $710 million this week.
An IMF review mission landed in Pakistan on November 2 and reviewed the
country’s progress on targets set in a $3 billion programme approved in
July this year to bail out the struggling economy.
The IMF executive board had approved the nine-month standby arrangement
(SBA) with Pakistan “to support its economic stabilisation programme”.
Following the approval by IMF board, the lender disbursed an installment
of $1.1 billion to Pakistan.
If the second quarterly review is successful, it will allow for the
release of the second tranche worth $710 million.
Sources said that the Federal Board of Revenue (FBR), in its first
meeting with IMF review mission, presented a report regarding the tax
performance of July-September.
The report encompassed revenue target, payments of refunds and tax
rebates as dictated by the IMF during its previous meeting with Pakistan
delegation.
The report mentioned that the target of income tax refunds during the
period of July-September has been achieved.
The revenue board also assured the delegation of achieving the revenue
target of Rs9.415 trillion. Moreover, the review mission was also
assured of not introducing ‘any new tax amnesty scheme’.
The FBR report stated that income tax refund payments were being
gradually reduced according to the plan. The board did not give tax
exemption during the first July-September quarter as agreed in the loan
programme.
It is pertinent to mention here that the caretaker government and the
International Monetary Fund (IMF) kicked off the much-awaited loan
review talks.
A day earlier, interim Finance Minister Shamshad Akhtar briefed the
International Monetary Fund (IMF) mission on the steps being taken by
the government to “improve the economic situation”.
A statement issued by the Ministry of Finance said that the finance
minister welcomed the delegation and shared progress on the SBA.
“The minister briefed the mission on fiscal measures being taken by the
government to improve the economic situation,” the statement said.
It added that the meeting also included discussions on comprehensive
reforms and measures undertaken by the Federal Board of Revenue (FBR)
and the government’s strategies to address the circular debt issue.
The statement said that IMF mission chief Nathan Porter “appreciated”
the government’s commitment to meeting the first quarter targets, and
“commended the government’s efforts and measures taken in some critical
areas”.
“He further underscored the importance of the continuation of these
efforts to stay on track for the economic stability of the country,” it
added.
The statement added that the interim finance minister appreciated the
“continued support and assistance” of the Fund. She also reaffirmed the
government’s commitment to working closely with the IMF “to ensure the
successful completion of the SBA and achieve the economic objectives,”
the statement said.
During the next week, the IMF team would engage with power and petroleum
divisions the State Bank of Pakistan and key state-owned enterprises
besides officials of the Benazir Income Support Programme (BISP). NNI
