Pakistan Prepares to Seek IMF Concessions Amid Flood Crisis
ISLAMABAD — Prime Minister Shehbaz Sharif has instructed officials to seek broader concessions from the International Monetary Fund (IMF) during upcoming review talks, sources say, as the country grapples with severe floods and heavy rainfall.
According to insiders, the government plans to avoid introducing a mini-budget by proposing alternative revenue measures. Officials will highlight strict enforcement of existing tax policies as a way to address IMF concerns without adding new taxes.
The Finance Ministry is also preparing to make a case for relief measures, given the extensive damage caused by recent floods. Key priorities include easing electricity bills for affected households and requesting leniency on agricultural loan repayments.
Sources indicate that officials will ask the IMF to lower the Federal Board of Revenue’s (FBR) tax targets, citing revenue shortfalls linked to flood-related disruptions. A detailed briefing on the decline in tax collections and the fiscal impact of natural disasters is expected during discussions.
Talks may also touch on revising the country’s GDP growth target slightly downward, while seeking IMF approval to refrain from imposing additional taxes. Consideration is being given to an increase in federal spending to support rehabilitation and reconstruction in flood-hit areas.
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