Flood surcharge: President may again be asked to promulgate ordinance

The Ministry of Finance will again try to persuade President Asif Ali Zardai to impose flood surcharge through an ordinance to enhance revenue in an effort to contain burgeoning fiscal deficit, well informed sources revealed to Business Recorder here on Saturday. Sources sought to dispel the impression that talks between the IMF and Pakistan (from March 1 to 11) have ended without any fruitful results.
"The IMF team visited Pakistan at our invitation to observe our efforts in implementing policy measures to restore macroeconomic stability and supporting structural reforms," sources maintained. The Ministry of Finance has reportedly informed the IMF team that the government will do its best to contain the fiscal deficit at 5.3 percent of GDP, sources said. A press release issued by IMF on Friday night stated "there was agreement on the need to reduce the budget deficit in the current financial year" but did not mention any quantifiable target leading to speculation that the talks between the IMF and the government were inconclusive.
"It is true that the talks fuelled some confusion in the Capital but it is also a fact that the IMF team will again be here in Pakistan in May for the fifth review under the Stand-By Arrangement (SBA)", sources confirmed. They added, "the government will try its best to impose the 15 percent flood surcharge and 2.5 percent special excise duty after April 1".