KARACHI – The International Monetary Fund (IMF) has rubbished media reports that the global lender has asked Pakistan to increase taxes on salaries and business income and jack up levy on petroleum products.
The response comes after several media reports claimed that the IMF has asked the Pakistani authorities to reduce the tax slabs for both salaried and business class to four from seen in order to increase tax collection.
IMF’s resident representative in Pakistan Esther Perez Ruiz said there were no such plans at this time.
Earlier in July, the IMF approved much-needed loan programme for Pakistan, helping it avoid looming debt default.
Under the $3 billion standby arrangement (SBA), Pakistan received $1.2 billion from the global lender as the first tranche in July.
Pakistan is grappling with declining foreign exchange reserves, balance of payment crisis and other financial issues. However, the caretaker government is taking measures to put the economy on track.
IMF board to meet on Jan 11 for Pakistan loan programme approval
