![Islamabad: Finance Minister Muhammad Aurangzeb expressed optimism on Thursday that discussions with the International Monetary Fund (IMF) were progressing positively and anticipated reaching a staff-level agreement in July. The budget, which experts believe has been tailored to meet IMF criteria for securing a $6 to $8 billion bailout under the Extended Fund Facility (EFF), represents a 25% increase over the previous fiscal year. "The discussions with the IMF are on the right track [...] We are hopeful and aiming for a staff-level agreement in July," the finance minister told reporters during a post-budget press conference. The minister noted that virtual discussions with the IMF team were ongoing, covering various aspects of the budget. "I do not want to make any definitive statements at this time, but progress is being made positively." The government has set a challenging tax revenue target of Rs13 trillion for the upcoming fiscal year starting July 1, representing nearly a 40% increase from the current year, in the national budget designed to strengthen the case for a new IMF bailout deal. As the authorities explore avenues to boost revenues and reduce the fiscal deficit as part of the reforms being discussed with the IMF, they have raised taxes that are expected to generate an additional Rs3.8 trillion in line with IMF demands. The government has increased taxes on the salaried and non-salaried classes, real estate, retailers, vehicles, eliminated GST exemptions and introduced taxes on milk and milk products, mobile phones, and tier-1 retailers of branded stores at 18%. In response to reservations expressed by the Pakistan Peoples’ Party about the Rs18.7 trillion budget, the federal minister said that all allied parties had been briefed on the budget proposal and had given their consent. Gradual increase in PDL The minister stated that the increase in the petroleum development levy (PDL) would be gradual and linked to international oil prices. He said, “Petroleum levy will](https://tv84.pk/wp-content/uploads/2024/06/549123_6891981_updates.webp)
Islamabad: Finance Minister Muhammad Aurangzeb expressed optimism on Thursday that discussions with the International Monetary Fund (IMF) were progressing positively and anticipated reaching a staff-level agreement in July.
The budget, which experts believe has been tailored to meet IMF criteria for securing a $6 to $8 billion bailout under the Extended Fund Facility (EFF), represents a 25% increase over the previous fiscal year.
“The discussions with the IMF are on the right track […] We are hopeful and aiming for a staff-level agreement in July,” the finance minister told reporters during a post-budget press conference.
The minister noted that virtual discussions with the IMF team were ongoing, covering various aspects of the budget. “I do not want to make any definitive statements at this time, but progress is being made positively.”
The government has set a challenging tax revenue target of Rs13 trillion for the upcoming fiscal year starting July 1, representing nearly a 40% increase from the current year, in the national budget designed to strengthen the case for a new IMF bailout deal.
As the authorities explore avenues to boost revenues and reduce the fiscal deficit as part of the reforms being discussed with the IMF, they have raised taxes that are expected to generate an additional Rs3.8 trillion in line with IMF demands.
The government has increased taxes on the salaried and non-salaried classes, real estate, retailers, vehicles, eliminated GST exemptions and introduced taxes on milk and milk products, mobile phones, and tier-1 retailers of branded stores at 18%.
In response to reservations expressed by the Pakistan Peoples’ Party about the Rs18.7 trillion budget, the federal minister said that all allied parties had been briefed on the budget proposal and had given their consent.
Gradual increase in PDL
The minister stated that the increase in the petroleum development levy (PDL) would be gradual and linked to international oil prices.
He said, “Petroleum levy will
