IMF Managing Director Kristalina Georgieva has expressed optimism about nearing a conclusive agreement.
ISLAMABAD: (UrduPoint/Pakistan Point News-Nov 15th, 2023) IMF Managing Director Kristalina Georgieva hinted at an impending agreement with Pakistan, citing ongoing negotiations in an interview with Bloomberg.
Despite acknowledging the substantial challenges faced by Pakistani authorities in their active engagement with an economic program, Georgieva expressed optimism about nearing a conclusive agreement.
One of the pivotal issues highlighted by Georgieva is Pakistan's taxation, with the current tax collection standing at 12% of the Gross Domestic Product (GDP). The IMF has proposed a raise to 15%, addressing a critical aspect of fiscal policy in the ongoing negotiations.
The policy-level negotiations between Pakistan and the IMF signify a noteworthy development. Reportedly, the IMF has agreed to uphold Pakistan's annual tax target at Rs. 9.415 trillion, ensuring stability even if a mini-budget is introduced.
Of significance is the mutual agreement between Pakistan and the IMF not to further increase the interest rate post the completion of policy negotiations. This collaborative effort signifies a joint commitment to stabilizing the economic landscape of Pakistan.
