Islamabad, October 11, 2021 (PPI-OT): Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Sunday welcomed the resumption of talks with the IMF but noted that the conditions of the international lender are in conflict with the ground realities. IMF is demanding tough decisions which cannot be implemented at this stage when inflation has left masses reeling, he said.
Shahid Rasheed Butt said that IMF is not happy with the government’s plan to reduce circular debt and it is also concerned with the output of FBR as far as the revenue collection is concerned. He said that IMF wants a hike in power tariff which is not possible for the government in the current set of circumstances as it will hit masses and businesses.
IMF wants new taxes to be imposed and existing taxes to be revised upward but such a move is politically difficult for the government, he observed. Additionally, the Fund’s officials are not happy with the failure of Islamabad’s on its commitments related to withdrawal of sales tax exemptions and increase in personal income tax rates.
The business leader said that another review of FATF is due shortly and it is very important for Pakistan to come out of the Grey List to get more loans and attract investment which are necessary for survival. He said that the influence of the US in IMF and FATF is an open secret and both the institutions will be ready to cooperate once the relations between Pakistan and the US are improved. Pakistan should try to improve bilateral relations without compromising on principled matters, he said.
It may be mentioned that Pakistan and IMF would start policy level talks in Washington next week after talks at the technical level between the two sides remained inconclusive. Pakistan and IMF are holding talking for finalizing an agreement on the completion of sixth and seventh reviews under the $6 billion Extended Fund Facility. The policy level talks would remain from October 13 to October 15.
For more information, contact:
Dr. Shahid Rasheed Butt
Consul General Ghana
Former President ICCI
Former Patron ICST
Tel: +92-333-5132199, +92-51-2822571