RAISE TAXES TO SURVIVE: IMF TELLS PAKISTAN GOVERNMENT

ISLAMABAD: The IMF has expressed dissatisfaction at the current state of Pakistan’s tax collection as the cash-strapped government sought a bailout package of up to $6 billion from the multilateral lender to overcome the economic challenges, media reports said Tuesday.

The cash-strapped Pakistani government led by Prime Minister Imran Khan is facing grave economic challenges as it struggles to keep the economy afloat.

Last month, Saudi Arabia said it would provide Pakistan with a USD 6 billion rescue package, but officials have said it is not enough, and Islamabad still plans to seek a bailout from the International Monetary Fund. Pakistan may ask the IMF for up to $6 billion, Geo News reported. If approved, it would be Pakistan’s 13th rescue package from the multilateral lender since the late 1980s.

Pakistan formally approached the IMF in October for loans. An IMF team is currently reviewing Pakistan’s monetary and fiscal policies as well as its monetary needs in keeping with the current account deficit.

On Monday, the delegation, which has already concluded the technical discussions with the Pakistani representatives, commenced its policy-level talks with ministers and representatives of the Federal Board of Revenue.

Members of the team, led by Harald Finger, a senior economist and an adviser to the IMF, stressed on steps need to raise tax collection, Geo reported. PTI