Islamabad: International Monetary Fund has warned Pakistan that If Pakistan could not get the letter of comfort from IMF, the other countries as well as donor agencies would also cease financial assistance to the country.
While addressing a seminar in Islamabad on Monday renowned economist and former advisor to IMF and World Bank Dr Ahmed termed the prevailing system of general sales tax (GST) of Pakistan, worst ever tax system globally.
“Due to failure in brining tax reforms, NFC award between the provinces had also been unsuccessful. There is political instability in the country and under these circumstances it would be very hard for the government to take fresh loan”, he added.
He said the basic theme of IMF programme was to enhance fiscal resources of the country under which Pakistan had made pledges to IMF that tax to GDP ratio would be brought to 14 percent, which were not fulfilled yet.
He said that pressure would not be put on common man with Reformed General Sales Tax (RGST). If this system would not be introduced, the country would has to take more debts, which would not only swell the inflation rate but also the plight of people would become further adverse.
He said that IMF would not release the sixth installment of $1.30 billion under Standby Arrangement Programme in any case until and unless the implementation of RGST and complete sovereignty of State Bank.
“If IMF would agree to give fresh loan to Pakistan in current state of affairs, then it would has the extremely toughest conditions, which would become really a hard task for Pakistan to fulfill these conditions” , he added.
He said that although foreign reserves of Pakistan are at high level but the lion’s share in that was consisted of loans taken from IMF. He said that Pakistan should not depend wholly on USA but she has to increase its revenues by utilizing her own resources.
Dr Ahmed was of the view that the programme initiated by World Bank to bring administrative reforms in Federal Board of Revenue (FBR) was completely thwarted and due to lack of managerial control, the revenue rate in the county was plunged down instead of boosting up.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription