According to a local media outlet report, Federal Finance Minister Shaukat Tarin hinted at renegotiating the contract with the International Monetary Fund (IMF) and said the organization was unfair to Pakistan.
According to the paper, Tarin has stated that the IMF’s demand for an increase in the electricity tariff is unfair, arguing that raising the tariff would only increase corruption in the country and that he is attempting to persuade the IMF that the tariff hike is causing inflation.
“We have told the IMF that we will reduce circular debt, but the demand for higher tariffs is inexplicable,” he said. The minister also cautioned that if GDP growth does not reach at least 5% in the next four years, the country will face a severe crisis.
Earlier on Sunday, the finance minister said that all stakeholders would be consulted during the budget planning process to achieve sustainable development and inclusive growth goals.
Tarin praised the budget proposal presented by representatives of traders and industrialists in an online meeting with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
He believes that much more needs to be achieved and that the solutions must be radical and long-term gradual improvements developed in collaboration with the company.
In response to FPCCI’s presentation on “Reduced Taxes for Accelerated Growth and Enhanced Tax Revenue,” the finance minister expressed appreciation for the tax policy and theory definition and pledged to continue consultation and consideration tax simplification and reduction proposals.
He said the different tax rates suggested by FPCCI could be debated further for the outcome.
FPCCI President Mian Nasser Hyatt Muggo briefed the finance minister on issues confronting Pakistan’s companies, manufacturing, and traders. He cited many factors, including the need for a paradigm change in the current taxation system to revive the ailing economy.