The International Monetary Fund (IMF) has raised concerns regarding the performance of the Federal Revenue Board of Pakistan (FBR) and has rejected claims that the income deficit has been resolved.
The sources declared that the discussions between the IMF mission and the Ministry of Finance are ongoing for a section of $ 1 billion. A team led by the Federal Minister of Finance, Mohammad Aurengzeb, met with the IMF mission to discuss the new fiscal objectives, Express News reported Thursday.
During the meeting, the government provided information on the integration of public institutions and cost savings measures, including the merger of institutions and the elimination of positions, which resulted in RS17 billion savings.
Despite these efforts, the IMF questioned the effectiveness of FBR to address the income deficit and rejected the statements made by Pakistani officials regarding the resolution of this issue.
In addition, the meeting explored the correct size of government employees and the possibility of a “golden hands”, which could lead to the elimination of 700 positions in grades 17 to 22, together with thousands of low -grade positions.
The sources also mentioned that amendments to the Law of Public Officials are being considered to facilitate the elimination of excess governmental employees. The Ministry of Finance Alos presented a strategy to reduce expenses and address the income deficit.
Previously, the IMF rejected Pakistan’s request to grant tax exemptions for foreign investment projects. The Special Investment Facilitation Council (SIFC) had sought exemptions during detailed information to the IMF delegation, arguing that tax relief would help attract foreign investors.
However, the global lender rejected the request, maintaining his position on fiscal discipline.
During the informative session, SIFC officials presented investment opportunities, government structures and infrastructure plans.
