IMF delegation in Pakistan holds talks with government's economic team

By
Ashraf Malkham
|
The International Monetary Fund (IMF) logo is seen during the IMF/World Bank spring meetings in Washington, US, April 21, 2017. REUTERS/Yuri Gripas/Files

ISLAMABAD: A delegation of the International Monetary Fund (IMF) held talks with government's economic team on Monday after arriving in Pakistan earlier today.

During first day of the IMF Mission officials' visit to Pakistan, they met representatives from the Finance Ministry and the Federal Board of Revenue (FBR).

Sources told Geo News that FBR Chairperson Shabbar Zaidi briefed the IMF Mission — led by Mission Chief Ernesto Ramirez Rigo — on the revenue targets and tax collections during the first quarter of the financial year.

Also read: IMF delegation in Pakistan for quarterly progress review

The IMF team briefed the Pakistani officials on how to improve tax collection as FBR officials explained the revenue shortfall caused by a decrease in the country's imports.

FBR officials noted that the tax collection rose 16 percent while local tax collection bumped up 26 percent during the July-September period. They said rate of income tax collection, sales tax collection, and Excise Duty increased 19 percent, 21 percent, and 19 percent respectively.

FBR officials said custom duty collection dropped three percent due to a $3-billion decrease in imports.

Read more: Pakistan to remain on FATF grey list till February 2020

During the meeting, the ministry of finance also briefed the global monetary body's delegation. The talks would continue on Tuesday as well as the IMF team was set to stay in Pakistan from October 27 to November 7.

The delegation will submit a report to the IMF mission, based on which it would be decided as to whether to approve a tranche worth $460 million of the $6-billion three-year bailout package agreed upon back in July. Islamabad had earlier received $1 billion of the total amount.

Read more: FATF expresses satisfaction on measures taken by Pakistan

Among the various conditions set by the global monetary body was also a review of Pakistan's efforts to remove itself from the Financial Action Task Force's (FATF) grey list, which the country will remain in till at least February 2020.

Earlier this month, the intergovernmental organisation's president had said Pakistan made progress towards money-laundering and terror-financing.

While Pakistan failed to achieve its tax-collection target, the FATF commended the rise in the number of tax-payers. However, Islamabad remains hopeful that the IMF would be lenient in these regards.

Related:

IMF approves three-year $6bn bailout package for Pakistan

IMF report forecasts bleak 2020 for Pakistan economy