News
Wednesday, September 07, 2011
Pak-IMF talks likely later this month* Two sides will discuss possibility of resumption of suspended $11.3 billion Stand-By-Arrangement programme
By Sajid Chaudhry
ISLAMABAD: After a long interval, Pakistan and International Monetary Fund (IMF) authorities are expected to chalk out a future engagement road map at the sidelines of a World Bank and IMF annual meeting scheduled to be held from September 23 to September 25 at Washington, official sources said on Tuesday.
According to sources, the Pak-IMF sideline meetings will discuss the resumption of bilateral talks, the possibility of resumption of suspended $11.3 billion Stand-By-Arrangement and the possibility of a new IMF loan programme for the repayment of an IMF loan starting from February 2012.
The sources further said that there was an urgent need for the resumption of Pak-IMF talks as the country was facing numerous challenges that could only be met with the help of IMF, World Bank and the Asian Development Bank.
Preparations for the sideline meetings with IMF at Washington are already underway and data relating to the last fiscal year has already been shared with IMF authorities. Data regarding the fresh challenges posed by the worsening law and order situation in Karachi and the havoc caused by rains in many parts of the country, especially Sindh, is also being compiled.
Sources said that FBR has collected Rs 105 billion against the collection target of Rs 95 billion for the month of July 2011. However, for meeting the Rs 1.952 trillion annual tax collection target, FBR is required to collect at least Rs 160 billion per month in revenue during the ongoing fiscal year 2011-12.
The sources further said that discussion was already underway over the possibility of a revision in the tax collection target of Rs 1.952 trillion for 2011-12. Although the Ministry of Finance and FBR are currently adamant about the existing target of Rs 1.952 trillion, a final decision will be taken within a week.
A possibility of a downward revision in tax collection target from Rs 1.952 trillion to Rs 1.860 trillion with a cut of Rs 92 billion has already been discussed in Revenue Advisory Council.
In case the Ministry of Finance decides to revise the tax collection target, expenditures of the federal government would need to be revised in accordance with the revision in tax collection target.
In case the Ministry of Finance decides to maintain the existing revenue collection target at Rs 1.952 trillion for the ongoing fiscal year 2011-12, FBR would be required to take additional administrative measures, as the country cannot afford to introduce fresh revenue measures at this point.
Sources said that the delay in disbursement of compensation to the flood-affected population was due to the data verification by provinces with NADRA and that the government had already arranged the required amount, which would be disbursed upon completion of the data verification process.
Courtesy www.dailytimes.com.pk