The International Monetary Fund (IMF) frequently provides recommendations to its member countries on economic policies and reforms to support sustainable growth and stability.
Regarding this, The IMF delegation arrived in Islamabad on 30th January 2023 to discuss the stalled ninth review of the 7 billion Dollar Extended Fund Facility (EFF).
During the talks, IMF asked Pakistan to increase the general sales tax rate to a minimum of 18% to raise more taxes as part of its efforts to address fiscal imbalances and improve the country’s economic situation.
The global lender placed the demand to increase the standard GST rate the day the government shared its revised macroeconomic projections, which showed inflation accelerating to 29% and the economic growth rate slowing down to 1.5%.
The higher inflation and lower economic growth would cause higher unemployment and poverty in the country. However, it is ultimately up to the government of Pakistan to decide whether to implement this recommendation.
Earlier The International Monetary Fund (IMF) demanded Pakistan amend its laws regarding the assets declaration of public servants.
According to the sources inside the Federal Board of Revenue (FBR), the IMF requested the public declaration of the government servants’ assets. not only this but the IMF also demanded details of the overseas assets of the bureaucracy, sources said.
Sources said that The IMF has also demanded to make public the government officers’ assets.
IMF Proposed setting up an Electronic Assets Declaration System for transparency.
“Bureaucrats’ assets will be checked prior to the opening of a bank account,” sources said. “Banks will get information from the FBR for the opening of accounts of bureaucrats.”
“All 17 to 22 Grade officers have to provide all information before opening a bank account,” sources said.
It is to be Pertinent that The IMF asked Pakistan to impose roughly Rs600-800 billion in additional taxes in the second round of talks to revive the $7 billion Extended Fund Facility (EFF) stalled for months.