Monday, June 17, 2024

IMF Demands Pakistan to Raise General Sales Tax (GST) to 18%

The International Monetary Fund (IMF) urged Pakistan on Thursday to earn more revenue by raising the general sales tax rate to at least 18%, as the cost of the nation’s debt payment was predicted to soar alarmingly to Rs 5.2 trillion in the current fiscal year.

The day after the government released its updated macroeconomic estimates, which showed inflation increasing to 29% and economic growth dropping to 1.5%, the global lender demanded an increase in the basic GST rate.

Increased unemployment and poverty in the nation would result from higher inflation and slower economic growth.

The government disclosed the specifics of the predicted inflows and the $30 billion in external financing obligations one day earlier. However, according to reports, the IMF did not seem confident in the nation’s ability to raise nearly $8 billion from the capital markets and foreign commercial banks in these difficult circumstances.

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