Targeted subsidies: IMF has no objections over implementation, Aurangzeb claims

ISLAMABAD: Finance Minister Muhammad Aurangzeb claimed on Tuesday that the International Monetary Fund (IMF) has no objections over implementation of targeted subsidies.

Talking to journalists inside Parliament House, he said that those subsidies could be given to eligible recipients through Benazir Income Support Programme (BISP).

To ensure uniformity, he indicated that discussions would be held with chief ministers this week in a bid to apply a consistent policy nationwide.

‘Do more’: IMF says budget approval ‘not enough’

He said the federal finance secretary would coordinate with provincial secretaries to prepare a comprehensive national financial package alongside the provinces.

Addressing concerns over external financing, Aurangzeb disclosed $2 billion gap and noted that negotiations were at an advanced stage to bridge that shortfall.

He emphasised the importance of securing commercial loans.

“There is a need to secure an agreement for commercial loans at this time, not exactly their issuance,” he added, stressing that talks for debt rollover were in their final stages and progressing positively.

He anticipated that relevant institutions from allied countries would soon update their governments on those developments.

Regarding tax policy, he assured that Federal Board of Revenue (FBR) was set to meet its tax collection targets through enhanced digitalisation and enforcement measures.

He also said that there were no current plans to increase withholding taxes.

He further said that the demand for withdrawal of income tax on traders meant the tax should be collected from the salaried class and the manufacturing sector.

In response to demands from the trading community, he stressed that they would be extended every facility and their legitimate demands accepted.

“Every sector of the society must pay tax without which the country cannot develop,” he added.

Copyright Business Recorder, 2024