All IMF conditions already met, Pakistan eyes $6b bailout program: Finance Minister Aurangzeb

Finance Minister Aurangzeb has said that Pakistan wanted to get $6 billion bailout package from the IMF as Islamabad has already met all IMF conditions, reported 24NewsHD TV channel.

Talking to media after attending a meeting of National Assembly Standing Committee on Finance, the Finance Minister said new loan program will be finalized this month.

He said climate change issues will also be discussed after the first review mission of the new loan program. The Finance Minister said climate financing funding was not being negotiated in current negotiations with IMF.

He said progress has also been made on improving income tax collections on agriculture and the consultations with provinces regarding agricultural income tax were underway.

Earlier, the National Assembly Standing Committee on Finance meeting was held under the chair of MNA Syed Naveed Qamar to review the performance of the Finance Ministry.

Finance Minister Muhammad Aurangzeb gave a briefing to the committee about the government’s various initiatives to boost economic recovery.

Finance Minister Aurangzeb told the participants that all economic indicators remained positive during the last financial year 2023-2024 and foreign exchange reserves touched over 9 billion dollars while the inflation rate also declined gradually.

He said currency remained unstable due to a delay in IMF bailout program in 2023 but after the agreement, economic conditions improved, profits and dividends of foreign companies were being paid.

The Finance Minister claimed that due to the IMF program, the government was getting funds from other institutions. He said now World Bank has approved funding of 1 billion dollars for the Dasu Dam.

Aurangzeb claimed that nothing was being controlled artificially by the government, adding that there are no restrictions on imports and the assumptions about the value of the dollar were a thing of the past.

He said the value of the dollar will remain stable and the assumptions that the dollar will cross 400 were over. The Finance Minister said builders and developers were being taxed and the registration of retailers has started.

Aurangzeb said all four provincial ministers have agreed to agricultural income tax.

He claimed that pressure was coming from every sector as every sector wanted waivers.

The Finance Minister said the IMF has called for an end to the presumptive tax.

The Finance Minister said the immediate release of tax refunds to exporters was ordered by the Finance Ministry. The Finance Minister said earlier 5% bribe for tax refunds had become part of the system but now the government has requested that businesses not to give money for tax refunds.

Muhammad Aurangzeb claimed that already Rs260 billion tax refunds have been issued.

On the occasion, Naveed Qamar questioned Finance Minister that has the IMF made a condition to remove the presumptive tax on exporters only as the government was imposing several similar taxes in electricity bills.

Naveed Qamar questioned whether the government will abolish these taxes in electricity bills. The Finance Minister said the contributory pension system has been started for civil servants from 1st July 2024 while the contributory pension system for armed forces to start from July 1, 2025 as armed forces have to look at their service structure.

The Finance Minister said 5 Federal Ministries will be abolished this year. He said the IMF program will be completed this month and the new IMF program was moving in a positive direction.

On the occasion, the Finance Secretary said the unemployment rate in the country has reached 10.3 percent. He said according to the World Bank, the unemployment rate in Pakistan is 10.3 percent and according to the ILO the unemployment rate is 8.2 percent.

Reporter: Waqas Azeem