The talks between Pakistan and the International Monetary Fund (IMF) have entered the second week. According to sources, the IMF has sought a briefing on the details of tax exemptions given in various sectors so that their impact on revenue can be assessed.
According to sources, officials of the Ministry of Finance will give a detailed briefing to the IMF regarding the export and subsequent import of sugar. Along with this, the tax exemptions given on the Reko Diq project and its financial impact will also be discussed.
Sources said that the IMF has sought a complete report on the macroeconomic impact and financing model of the Reko Diq project. The delegation will be informed about the impact of fiscal risks related to local and international investment, taxes, royalties and guarantees in the project.
According to financial experts, this concern of the IMF can have a direct impact on Pakistan’s revenue system and investment policies, while the government maintains that projects like Reko Diq are playing an important role in restoring the confidence of foreign investors in the country.
