In his testimony to the Standing Committee on Finance, Federal Minister for Finance and Revenue Ishaq Dar sharply criticized the current geopolitical initiatives and foreign pressure on Pakistan’s economy.
He compared Pakistan’s predicament to Sri Lanka’s and asserted that foreign forces are actively attempting to get Pakistan to stop making debt payments.
Dar reaffirmed that the government’s first priority is the repayment of its foreign debt and emphasized that no payment will be missed.
IMF Is Wasting The Time of Pakistan, Ishaq Dar
Dar expressed his displeasure with the lender’s participation and accused them of wasting Pakistan’s time when speaking about the development of negotiations with the International Monetary Fund (IMF).
He said that the tax exemptions proposed in the budget for 2023–2024 had drawn the ire of the IMF.
The finance minister expressed confusion at the lender’s position and claimed that Pakistan, as a sovereign state, has the ability to define its tax policy, including where exemptions should be given and taxes should be collected.
Role of IMF and Pakistani Sovereignty
In discussing the budget ideas, Dar emphasised that the federal government hopes to raise Rs. 9.2 trillion in taxes over the ensuing fiscal year, with particular incentives for IT freelancers.
However, the government adamantly rejects the IMF’s demand that it stop offering incentives to young people employed in the IT sector.
Dar emphasized that eliminating tax exemptions would undermine the government’s current budget plans, which are aimed at promoting equitable tax growth.
The finance minister spoke with media following the committee meeting and reaffirmed his optimism for the outcome of the negotiations with the IMF.
He declared that the ninth review would be finished, proving the government’s dedication to settling disputes and reaching win-win results.
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