IMF slaps fresh conditions on Pakistan along with warnings amid tensions with India
PTC News Desk: The International Monetary Fund has imposed fresh conditions on Pakistan for the release of next bailout programme along with a warning that escalating tensions with India could heighten risks to the scheme's fiscal, external, and reform goals.
The new conditions imposed on Pakistan include the parliamentary approval of a new Rs 17.6 trillion budget, an increase in the debt servicing surcharge on electricity bills and lifting restrictions on import of more than three-year-old used cars.
According to the local media report, the IMF in its report cited that "rising tensions between India and Pakistan, if sustained or deteriorate further, could heighten risks to the fiscal, external and reform goals of the programme".
The report further mentioned that the tensions between both the nuclear armed nations have escalated significantly in fortnight. However the market remains modest owing to the situation with the stock market retaining most of its recent gains and spreads widening moderately.
The IMF report has shown the defence budget for the next fiscal year at Rs 2.414 trillion, which is higher by Rs 252 billion or 12%.
Compared to the IMF's projection, the government has indicated allocating over Rs 2.5 trillion or an 18% higher budget, after confrontation with India early this month.
A new requirement has been introduced for the provinces, mandating that all four federating units enforce the revised Agriculture Income Tax laws through a detailed implementation strategy. This plan must include setting up a functional system for processing tax returns, identifying and registering taxpayers, launching a public awareness campaign, and developing a strategy to enhance compliance.
- With inputs from agencies
