Islamabad: The government has started preparing a strategy to seek relaxation in certain conditions from the International Monetary Fund (IMF) to reduce economic pressure and support the industrial sector. According to sources in the Finance Ministry, in the upcoming negotiations, a request will be made to get relief in terms of tax collection targets and energy prices so that business activities can be promoted and economic growth can be accelerated.
Sources say that the government has decided to rearrange its priorities under the IMF program and for this purpose, actionable proposals have been sought from various ministries and relevant departments within two weeks. These proposals will include tax relief for industries, reduction in electricity prices and measures to reduce production costs.
The Ministry of Industries and Production has been specifically instructed to prepare detailed recommendations on the problems faced by the industrial sector and their possible solutions so that a strong position can be presented in the negotiations with the IMF. According to officials, many industries are facing difficulties due to rising production costs and expensive electricity, which is affecting both exports and employment.
Sources in the Ministry of Finance said that Prime Minister Shehbaz Sharif has also instructed the relevant authorities to give top priority to the revival of industries and promotion of investment in the upcoming negotiations. The government is working on proposals for reduction in super tax and relief in power tariffs to facilitate big companies and the export sector.
According to sources, the Managing Director of the IMF has assured full cooperation with Pakistan during the loan program and the government will inform the fund about its economic strategy and development goals. Economists say that if the energy and tax burdens are reduced, it could open up the possibility of reviving industrial activity and improving the economy.
Government decides to seek tax target and relaxation in electricity prices from IMF, prepares relief for industries
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