Policy-level talks between Pakistan and the IMF are ongoing and sources have claimed that the government may face new targets to secure a $1 billion tranche.
According to the report, sources said that negotiations will be held on the budget for the next fiscal year and reduction in circular debt, a proposal to impose a surcharge of Rs 2.80 per unit on electricity bills is under consideration, and the possibility of imposing a carbon tax on petrol and diesel vehicles will be considered.
Sources say that discussions will also be held on the proposal to impose a carbon levy on coal-fired power plants, and final talks are expected on the short-term plan for privatization.
According to sources, discussions are also underway on tax reforms in the electric vehicle policy, a demand for “do more” from Pakistan is expected in the technical talks, and the IMF will issue an initial statement after the policy-level talks are over.
According to sources, the authorities briefed the IMF that there is a scope to collect Rs 300 billion in agricultural income tax.
Sources said that a special session will be held today on the circular debt management plan, a plan to borrow Rs 1250 billion to reduce circular debt is ready, the government has proposed to borrow Rs 1250 billion from banks at an interest rate of 10.8%.
Sources said that a proposal to pay off debt by imposing a surcharge of Rs 2.8 per unit on consumers is under consideration, there will be a special session on the implementation of NEPRA decisions, and the National Finance Commission will discuss the distribution of revenue between the federation and the provinces.
