Islamabad: Pakistani Cabinet on Thursday approved an additional budget that plans to end the sale of sales tax and collect new tasks as part of the steps of fiscal tightening which aims to win funds from the International Monetary Fund.
The IMF approval is also an important support for the Pakistani economy, which struggles with an external and running account deficit, depreciation currency, struggles for foreign exchange reserves and increases inflation.
The IMF agreed last month to revive the jammed $ 6 billion funding program, but demanded the tightening of the central bank’s budget and autonomy from Pakistan before the next stage can be approved.
The IMF council met on January 12 to approve the tranche.
Imran Khan’s government will need support for his allies in parliament to win a simple majority to pass financial bills.
The government aims to increase billions of rupees by pulling the exception of sales tax so that all sectors pay uniform 17%, new task levies and revisions of tax collection targets, officials said.
Reuters.