Islamabad: The five-day talks between Pakistan and the International Monetary Fund (IMF) reportedly ended with the primary directive to the province to ensure that all the arrangements needed to implement the agricultural income tax within the predetermined timeframe had been completed.
Nathan Porter, the Chief Mission of the International Monetary Fund for Pakistan, led the delegation that arrived in Islamabad on Monday to engage in discussions with Pakistani officials.
On Friday, the visiting team met with representatives of the provincial governments, the Federal Bureau of Reconstruction (FBR), Federal Minister for Finance Muhammad Aurangzeb, and Minister for Power Awais Laghari.
Agricultural income tax and provincial excess budget issues were discussed during the session with the provinces. The IMF updated provincial surplus budget statistics from the authorities.
Also read: IMF shows concerns over provinces’ fiscal performance, sources
The team received information indicating that the province governments have exceeded the Rs18 billion surplus budget objective of Rs342 billion. The latest figures show that Punjab contributed Rs 200 billion to help the country reach the goal for the first quarter of the current fiscal year.
The province has added Rs200 billion to the budget, bringing the total deficit for the first three months down to Rs40 billion.
Sources claimed that the provincial delegates have some challenging questions regarding their performance by the visiting delegation. The IMF further stated that the Sindh government was instructed to finish the legislative procedure for imposing an income tax on farmers starting on January 1, 2025.
Also read: No need to introduce minibudget, Pak, IMF agree
Punjab has the potential to collect Rs 2300 billion in agriculture taxes. However, Punjab can initially earn Rs 1050 billion a year. The IMF has insisted that agricultural tax collection begins in January 2025.
Both parties have decided to employ advisors to carry out the National Financial Packet agreements.
Sources claimed that the IMF has also received assurances from the administration over the plans for outside funding.