ISLAMABAD (Newsman): IMF has asked Pakistan to give equal treatment of foreign investors. This point has specially risen when Pakistan is giving Chinese investors and CPEC some preferential treatment.
IMF has urged Pakistan to enforce a uniform policy for foreign investors, eliminating tax exemptions for Special Economic Zones (SEZs). Its objective is to ensure fair treatment for foreign and local investors from all regions, including investors from Gulf or European nations.
Furthermore, FBR could also enforce somewhat reduced Sales Tax on petroleum products.
The Federal Board of Revenue (FBR) is pondering to levy a reduced sales tax of 3-5% on the sale of petroleum products to manage the revenue shortfall for 2024-25.
During the budget planning process, a proposed 18% standard tax rate on POL products was not accepted by the Prime Minister due to its huge inflationary impact for the masses.
IMF mission staff is also likely to meet SIFC officials during their current stay. Their meeting is planned on November 15. Where, they are likely to emphasize the equal treatment with all kind of investors.
A report will also be submitted to IMF within couple of days on especial economic zones.
FBR talks with IMF held yesterday which was mostly on the revenue shortfall n the initial months.
National Fiscal Pact, circular debt of the energy sector, and financial sector issues came under discussion.
Track and trail system, retailers scheme, SOEs (state-owned enterprises) reforms were also discussed and IMF staff was updated on these all aspects.
Finance Ministry officials assured the IMF staff to meet all the targets set by IMF.
