ISLAMABAD: The Pakistan has reportedly assured the International Monetary Fund (IMF) of implementing new taxes amounting to Rs18 billion monthly.

This commitment is said to be in response to the IMF’s persistent “do more” demands. To address the anticipated shortfall in tax collection, the government has pledged to impose additional taxes on the textile and sugar sectors.

The caretaker government has presented a plan to the IMF outlining the strategy for increasing taxes, setting a target of Rs11,000 billion for tax collection.

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One proposed measure is to raise the Goods and Services Tax (GST) on textiles and leather goods from 15% to 18%. On January 17, Pakistan received a $700 million loan tranche from the IMF under the nine-month Stand-By Arrangement (SBA).

This disbursement occurred after the IMF’s Executive Board completed the first review of Pakistan’s economic reform program supported by the SBA.

The Board’s decision allowed for an immediate release of approximately $700 million, bringing the total disbursements under the arrangement to about $1.9 billion.

The IMF’s approval follows a staff-level agreement reached between the Fund and Pakistan on November 15, 2023, highlighting the nation’s commitment to implementing crucial reforms.