ISLAMABAD: Amid the ongoing political and economic crises, President Asif Ali Zardari will today (Thursday) take a difficult decision on the issue of hiking electricity tariff and other taxation measures including withdrawal of zero rating regime for textile sector through issuance of SRO.
The president may accord approval to the agreement reached between the IMF and government’s economic team to stay in the Fund’s $11.3 billion Standby Arrangement Programme which is virtually suspended from May last year, a senior official who is privy to the talks with the IMF confided to The News on Wednesday late night.
After making commitment with the multilateral donors including IMF, WB and ADB to raise power tariff by 6 percent, the country’s economic managers have sought time from President Zardari today (Thursday) for getting approval.
“The wish list of the economic managers is going to be presented before President Asif Ali Zardari and the government will take all those measures approved by the president,” official sources confirmed.
The president, the sources said, would take decision keeping in view the political repercussions and finance managers believe that the government would approve hiking of power tariff in the range of 2 to 6 percent with immediate effect, hiking of excise duty to 2.5 percent and 15 percent flood surcharge.
The IMF Staff Mission that extended its visit to Pakistan for two days reportedly on the intervention of the US administration, has pressed upon the economic managers of the country to raise the power tariff by 2 percent in every month till June 30 from April 1, 2011 till June 2011, impose 15% flood surcharge, 2.5 percent central excised duty and 100 percent withdrawal in General Sales Tax regime and enforcement oft of RGST from next fiscal.
The IMF mission had earlier prepared a press release about 8pm on Tuesday which was scheduled to be officially released from its Washington head office pertaining to the failure of the talks and no advancement on the critical issues with regard to the mobilisation of the revenue, serious efforts to curtail the expenditures and achieve the target of 4.7 percent deficit target.
When the press release was shared with the finance minister and his secretary, they found the press release not in favour of Pakistan and then they sprang into action and used their ‘good offices’ to influence the IMF not to issue such press release. The Pakistan’s concerned authorities with the help of US intervention managed to influence IMF Staff Mission to extend their stay in Pakistan for more 2 days and assured the commitment that the government would do the needful. If the government succeeds to do so as recommended by his economic team and the IMF, then it may face backlash from the masses political parties. (The News)
The president may accord approval to the agreement reached between the IMF and government’s economic team to stay in the Fund’s $11.3 billion Standby Arrangement Programme which is virtually suspended from May last year, a senior official who is privy to the talks with the IMF confided to The News on Wednesday late night.
After making commitment with the multilateral donors including IMF, WB and ADB to raise power tariff by 6 percent, the country’s economic managers have sought time from President Zardari today (Thursday) for getting approval.
“The wish list of the economic managers is going to be presented before President Asif Ali Zardari and the government will take all those measures approved by the president,” official sources confirmed.
The president, the sources said, would take decision keeping in view the political repercussions and finance managers believe that the government would approve hiking of power tariff in the range of 2 to 6 percent with immediate effect, hiking of excise duty to 2.5 percent and 15 percent flood surcharge.
The IMF Staff Mission that extended its visit to Pakistan for two days reportedly on the intervention of the US administration, has pressed upon the economic managers of the country to raise the power tariff by 2 percent in every month till June 30 from April 1, 2011 till June 2011, impose 15% flood surcharge, 2.5 percent central excised duty and 100 percent withdrawal in General Sales Tax regime and enforcement oft of RGST from next fiscal.
The IMF mission had earlier prepared a press release about 8pm on Tuesday which was scheduled to be officially released from its Washington head office pertaining to the failure of the talks and no advancement on the critical issues with regard to the mobilisation of the revenue, serious efforts to curtail the expenditures and achieve the target of 4.7 percent deficit target.
When the press release was shared with the finance minister and his secretary, they found the press release not in favour of Pakistan and then they sprang into action and used their ‘good offices’ to influence the IMF not to issue such press release. The Pakistan’s concerned authorities with the help of US intervention managed to influence IMF Staff Mission to extend their stay in Pakistan for more 2 days and assured the commitment that the government would do the needful. If the government succeeds to do so as recommended by his economic team and the IMF, then it may face backlash from the masses political parties. (The News)
