Pakistan Secures Revival Of $6 Bn Fund Facility From IMF

| Updated: June 22, 2022 6:11 pm

Pakistan, which has been struggling to find some economic relief, has finally struck a deal with the International Monetary Fund (IMF) to restore the stalled assistance package of US $6 billion. This deal came about as IMF officials and a delegation from Pakistan led by Finance Minister Miftah Ismail decided on conditions regarding the 2022-2023 budget. According to these conditions, Pakistan will have to raise its tax collection by (PKR) Rs43,600 crore. The government will also gradually increase the levy on petroleum to Rs50 per litre.

Pakistan, which has been struggling to find some economic relief, has finally struck a deal with the International Monetary Fund (IMF) to restore the stalled assistance package of US $6 billion. This deal came about as IMF officials and a delegation from Pakistan led by  Finance Minister Miftah Ismail, decided on conditions regarding the 2022-2023 budget. According to these conditions, Pakistan will have to raise its tax collection by (PKR) Rs43,600 crore. The will also gradually increase levy on petroleum to Rs50 per litre.

The fund facility of $6 billion was decided on in 2019, but until now, not even half of it has been repaid. As such, the facility was cut-off, but now, following the discussions, the funds will be released. This revival will give Pakistan immediate access to $1 billion, which the country needs badly.

According to sources, Ismail has said that country had taken cautious measures to increase tax earnings without having to burden the poor. These measures include imposing a poverty tax on those entities that register earnings of Rs15 crores or more. Furthermore, the government also agreed to do away with provisions for additional salaries and pensions. However, the government has set aside a block of contingency funds that would be strictly used for emergencies like floods and earthquakes..

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