The Pakistani government has reportedly guaranteed the International Monetary Fund (IMF) that it will implement new taxes amounting to Rs18 billion monthly. This assurance follows the IMF's "do more" demands.
To address the expected shortfall in tax collection, the government plans to impose additional taxes on the textile and sugar sectors. The caretaker government has presented a tax increase plan to meet a target of Rs11,000 billion in tax collection.
The proposal includes raising the Goods and Services Tax (GST) on textiles and leather goods from 15% to 18%. On January 17, Pakistan received a $700 million loan tranche from the IMF under the nine-month Stand-By Arrangement (SBA).
This disbursement is part of the IMF's approval of Pakistan's economic reform program, with the Board allowing an immediate release of around $700 million, bringing the total disbursements under the SBA to approximately $1.9 billion. The IMF's decision follows a staff-level agreement reached on November 15, 2023, emphasizing Pakistan's commitment to implementing essential reforms.
