ISLAMABAD- International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Wednesday signaled that a deal with Pakistan is imminent.
In an exclusive interview with the renowned American publication Bloomberg, Georgieva acknowledged the formidable challenges Pakistani authorities are navigating while actively engaging in a program, expressing optimism about nearing a conclusive agreement.
Georgieva highlighted the critical issue of taxation in Pakistan, emphasizing that currently, only 12% of the Gross Domestic Product (GDP) is collected as taxes. The IMF has proposed an increase to 15%, addressing a crucial aspect of fiscal policy in the negotiations.
The ongoing negotiations between Pakistan and the IMF at the policy level indicate a significant development. The IMF has reportedly agreed to maintain the annual tax target of Rs. 9.415 trillion for Pakistan, ensuring stability even if there is an introduction of a mini-budget.
It is noteworthy that both Pakistan and the IMF have mutually agreed not to escalate the interest rate further after the completion of policy negotiations, signifying a collaborative effort to stabilize the economic landscape.
