ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have completed talks on the economic review, with important progress expected tonight towards securing the $1.2 billion tranche, according to sources.
Sources in the Ministry of Finance said some members of the IMF delegation have completed their talks and will leave Pakistan tomorrow.
The sources said virtual discussions with the IMF will also be held on some targets.
During the talks, the IMF appreciated the performance of the Federal Board of Revenue (FBR) and the State Bank of Pakistan. The Ministry of Finance’s performance in maintaining economic stability was also appreciated, sources said.
Earlier, the International Monetary Fund (IMF) had ‘asked’ Pakistan to end the concessional tax rate on electric vehicles (EVs).
Pakistan is negotiating with the International Monetary Fund (IMF) regarding the loan programme, while a draft of the new auto policy is being prepared in light of the IMF’s objections.
According to sources, the IMF has demanded the withdrawal of sales tax concessions currently available on electric vehicles (EVs).
The IMF has reportedly argued that electric vehicles are a luxury item rather than a necessity for low-income consumers and has called for the concessional tax rate to be withdrawn.
Sources said the draft of the auto policy, incorporating the IMF’s objections, will soon be presented to Prime Minister Shehbaz Sharif.
