IMF rejects Pakistan’s budget for next financial year

F.P. Report

ISLAMABAD: The International Monetary Fund (IMF) has rejected the budget for the next fiscal year, on Thursday.

IMF representative Esther Perez said that the IMF had been discussing policies with the Pakistani authorities to maintain financial stability in Pakistan.

“The opportunity to widen the tax net in next year’s budget proposals has been missed,” she said.

“Introducing tax amnesty in the budget is a violation of the loan programme. The tax amnesty scheme can affect the loan programme,” she added.

“A long list of tax exemptions has reduced the transparency in the tax system,” she pointed out.

“Steps could have been taken to solve the problems of the energy sector in the budget. A strategy to deal with liquidity pressures in the energy sector could be included in the budget,” she added.

“Resources for the BISP have been reduced in the budget for the next financial year,” she said and added that the IMF was ready to work with the Pakistani government before the approval of the budget.