ISLAMABAD: Negotiations between Pakistan and the International Monetary Fund on a new program worth 6 to 8 billion dollars will begin this month.
According to Finance Ministry sources, the IMF review mission is likely to visit Pakistan in mid-May for talks. The IMF team will stay in Islamabad for 2 weeks.
The main features of the upcoming bailout package of 6 to 8 billion dollars will be determined in the negotiations between the parties, however, the size of the new IMF program will be determined in future talks. Pakistan is also likely to request for Pakistan to scale up the program through environmental financing along the lines of Bangladesh and Egypt.
Finalization of economic indicators and financial framework for the 4-year program will be discussed with the IMF. In this regard, the sources of the Ministry of Finance say that the federal budget of the next financial year will be prepared in the context of the new program of the IMF. After talks with the IMF, the government is likely to present its next budget before the parliament on June 6-7.
According to the sources, more stringent measures are likely to be taken for financial stability in the upcoming budget. Pension reforms have been suggested by the IMF. The IMF requires that the continuation of pensions for several generations is not feasible. A proposal to bring pension into the tax net is also under consideration.
Apart from this, there is a possibility that less than one lakh pensioners will be brought into the tax net by FBRK. Apart from this, a proposal to levy tax at a uniform rate of 10% on all pensioners is also under consideration.
