The International Monetary Fund (IMF) has raised concerns about the performance of the Federal Board of Return (FBR) of Pakistan and rejected the allegations that the income deficit was resolved.
Sources have said that discussions between the IMF mission and the Ministry of Finance are underway for $ 1 billion. A team led by the Federal Minister of Finance Mohammad Aurangzeb met the Mission of the IMF to discuss new tax objectives, Express News reported on Thursday.
During the meeting, the government provided a briefing on the integration of public institutions and economy measures, including the merger of institutions and the elimination of positions, which led to savings of 17 billion rupees.
Despite these efforts, the IMF has questioned the effectiveness of the FBR in the fight against the income deficit and rejected the complaints made by Pakistani officials concerning the resolution of this issue.
In addition, the meeting explored the dimensioning of government employees and the possibility of a “golden handshake”, which could lead to the elimination of 700 positions in 17 to 22nd year, as well as thousands of lower quality positions.
Sources have also mentioned that changes to the civil servant law are envisaged to facilitate the abolition of surplus government employees. The Ministry of Finance Alos has presented a strategy to reduce expenses and respond to the income deficit.
Earlier, the IMF rejected Pakistan’s request to grant tax exemptions for foreign investment projects. The Special Facilitation Investment Council (SIFC) had requested exemptions during a detailed briefing at the IMF delegation, arguing that tax relief would help attract foreign investors.
However, the world lender refused demand, maintaining his position on tax discipline.
During the briefing, SIFC officials presented investment opportunities, governance structures and infrastructure plans.
