Shaukat Tarin, Minister of Finance, announced on Thursday that Pakistan will receive $2.77 billion from the International Monetary Fund (IMF) on August 23.
Tarin stated during a press conference to announce the development that the cash will be sent straight to the State Bank of Pakistan, which will assist enhance the country’s foreign exchange reserves and consequently have a beneficial influence on the economy.
According to Tarin, the worldwide money lender has issued a total of $650 billion to various nations. The sum is intended to increase worldwide liquidity amid the coronavirus outbreak.
The finance minister stated that it was an “unconditional” IMF grant that will be put to good use.
According to Tarin, Pakistan has already been working on changes to provide stability and sustainability under the IMF program.
He stated that the government’s actions had borne fruit, as seen by an increase in revenue collection, which is indicative of economic development.
According to the finance minister, the 2021-22 budget comprises several good actions made by the administration, and so growth is predicted in the following months.
In answer to a query on the IMF’s severe terms, he stated that the global lender had advised in mid-March that one approach to decrease the rising circular debt in the electricity industry is to raise tariffs.
The finance minister stated that the IMF also discussed personal income taxes, which are normally in the range of Rs113-115 billion, but the Fund wants this increased by Rs150 billion.
“I suggested that the progressive way to accomplish it would be to bring those who are not in the tax net into the fold, rather than imposing the weight of more taxes on individuals who are already paying them,” he explained.
It is important to note that the IMF Board of Governors authorized a general distribution of Special Drawing Rights (SDR) for $650 billion (approximately SDR 456 billion) on August 2, 2021, to increase global liquidity.