Islamabad: The government has decided to impose a windfall tax of unto 40 percent on the profits of the banks in the country on the conditions of the IMF, sources said.
The IMF and the government financial team have agreed to impose windfall tax on the profits of the Banks up to Rs 55 billions.
The policy level negotiations between the International Monetary Fund (IMF) and the government financial team concluded today.
Finance Minister Shamshad Akhtar lead the Pakistan’s team in talks with the IMF mission for approval of next tranche of loan to Pakistan.
The international lender and the financial team of Pakistan will prepare final draft today.
Earlier in the day, Managing Director (MD) International Monetary Fund (IMF) Kristalina Georgieva has expressed hope that a staff level agreement with Pakistan for next tranche to be done in the current week.
In her interview with the Bloomberg Kristalina Georgieva expressed satisfaction with the performance of the Pakistani financial team.
IMF Managing Director Kristalina Georgieva says she expects a deal on a debt review with Pakistan to come soon, a development that could unlock more funds for the South Asian nation https://t.co/paNQZVYPwZ
— Bloomberg (@business) November 15, 2023
The MD IMF apprised that Pakistani authorities have taken the measures in a difficult circumstances.
She praised a set of initiatives taken by Pakistani Finance Minister Shamshad Akhtar.
She apprised further that the IMF mission visiting Pakistan held negotiations with Pakistan for a staff level agreement.
Talking about Pakistani problems she said that low rate of taxes earned are the real problem of Pakistan.
She furthered that Pakistan tax to GDP rate retained at 12 percent.
The MD of the international lender informed that the IMF has demanded Pakistan this rate by 15 percent.
