BAFL 46.25 Increased By ▲ 0.50 (1.09%)
BIPL 20.19 Decreased By ▼ -0.03 (-0.15%)
BOP 5.30 Decreased By ▼ -0.05 (-0.93%)
CNERGY 4.61 Increased By ▲ 0.06 (1.32%)
DFML 16.61 Increased By ▲ 0.64 (4.01%)
DGKC 78.06 Decreased By ▼ -0.63 (-0.8%)
FABL 28.21 Increased By ▲ 0.36 (1.29%)
FCCL 20.07 Increased By ▲ 1.21 (6.42%)
FFL 9.14 Increased By ▲ 0.16 (1.78%)
GGL 12.84 Decreased By ▼ -0.02 (-0.16%)
HBL 111.51 Decreased By ▼ -0.39 (-0.35%)
HUBC 123.69 Increased By ▲ 1.49 (1.22%)
HUMNL 7.65 No Change ▼ 0.00 (0%)
KEL 3.27 Increased By ▲ 0.03 (0.93%)
LOTCHEM 28.30 Increased By ▲ 0.32 (1.14%)
MLCF 41.81 Decreased By ▼ -0.64 (-1.51%)
OGDC 115.39 Increased By ▲ 4.71 (4.26%)
PAEL 19.05 Increased By ▲ 0.16 (0.85%)
PIBTL 5.53 Increased By ▲ 0.06 (1.1%)
PIOC 112.85 Decreased By ▼ -2.45 (-2.12%)
PPL 100.04 Increased By ▲ 5.05 (5.32%)
PRL 25.64 Increased By ▲ 0.27 (1.06%)
SILK 1.10 Decreased By ▼ -0.01 (-0.9%)
SNGP 67.52 Increased By ▲ 3.02 (4.68%)
SSGC 12.54 Increased By ▲ 0.27 (2.2%)
TELE 8.46 Increased By ▲ 0.07 (0.83%)
TPLP 13.39 No Change ▼ 0.00 (0%)
TRG 85.46 Increased By ▲ 1.36 (1.62%)
UNITY 26.60 Increased By ▲ 0.75 (2.9%)
WTL 1.57 Increased By ▲ 0.03 (1.95%)
BR100 6,377 Increased By 82.2 (1.31%)
BR30 22,376 Increased By 439.3 (2%)
KSE100 62,493 Increased By 801.8 (1.3%)
KSE30 20,829 Increased By 274.3 (1.33%)
Print Print 2022-05-31

Fate of 7th IMF EFF review dependent on FY23 budget composition

  • Technical level talks on the budget proposals will commence from today
Published May 31, 2022

ISLAMABAD: The fate of the seventh $6 billion Extended Fund Facility (EFF) review will depend on the composition of budget scheduled to be laid before parliament on 10 June with targets set that would indicate the government’s expenditure and revenue priorities for next fiscal year.

This was revealed by several senior officials of the Ministry of Finance on condition of strict anonymity. However, one official claimed that technical level talks on the budget proposals will commence from Tuesday (today).

Officials further contended that the Doha talks had been inconclusive with respect to projected expenditure for next fiscal year, particularly with respect to subsidies, though the Fund was reportedly satisfied with the Federal Board of Revenue’s (FBR’s) targets and presentation, including the levy of personal income tax and phasing out exemptions next year.

However, the FBR targets do not include petroleum levy (PL), budgeted at Rs 610 billion for 2021-22 (though less than half was realized) nor gas infrastructure development cess budgeted at Rs 130 billion, which is itemised under non-tax revenue receipts.

Background interaction with officials further revealed that primary deficit, budget deficit, a strategic plan for withdrawal of energy subsidies and a provincial surplus agreed and signed by provinces are major areas of interest to the Fund that could bring the programme back on track.

Stalled IMF programme: Govt fails to successfully persuade IMF

When Business Recorder asked what directions, if any, were being given by Finance Minister Miftah Ismail, officials said that the budget figures were being shared with London as well as Karachi where a former finance minister was currently resident. However, when this correspondent tried to confirm this at a very senior level this was vehemently denied.

Finance Ministry officials were tight-lipped to a query on the quantum of power sector subsidies next year that would be acceptable to the Fund.

However, they pointed out that power sector has been a problem in terms of subsidies’ projection every year, especially when the country is on a Fund programme, and this situation is likely to prevail in 2022-23 budget.

On condition of anonymity, officials in the finance ministry did not rule out an increase in power tariff before the budget. Finance Minister Miftah Ismail’s fudged a query during his Saturday’s press conference by stating that he had not yet received any summary for power tariff increase.

The revenue target set by Federal Board of Revenue (FBR) is Rs 7,255 billion for next fiscal year which would be achievable by taking new taxation measures of over Rs 300-350 billion – a growth of 18.9 percent compared to the Rs 6100 billion for the outgoing fiscal year.

The envisaged increase would be on the incidence of tax on sectors earning substantial profits including the banking sector, edible oil industry, steel sector, tobacco industry, and beverages in the budget (2022-23).

Copyright Business Recorder, 2022


Comments are closed.

Fate of 7th IMF EFF review dependent on FY23 budget composition

Four countries: FBR decides to ink deal on Electronic Data Interchange

Pakistan not on agenda of IMF Executive Board meeting

ECP likely to get election funds soon

Overbilling in violation of Nepra Act: All Discos including KE to face legal proceedings

Commodities being imported by TCP: Govt decides to change payment mechanism

Israeli ground forces move into southern Gaza

War risk insurance rates edge up

Cypher case: IK says will ‘drag’ Bajwa, US embassy officials through the courts

Nov oil sales rise 9pc MoM

Issues related to KE: Al-Jomaih shares its ‘ordeal’ with PM, petroleum minister