New Delhi: The International Monetary Fund (IMF) has issued strict conditions for disbursing $1.1 billion to Pakistan. Pakistan will have to take a number of drastic financial measures to get funding from the IMF. The IMF said that the huge gap in the fiscal deficit has to be reduced. Along with this, it has asked for an increase in GST on petroleum products.
It has said to increase the Goods and Services Tax (GST) rate in the country by 1 percent to 18 percent or impose 17 percent GST on petroleum, oil and lubricants (POL). However, there is a difference of opinion between the two sides regarding the amount of the country’s financial deficit. According to the IMF, Pakistan’s fiscal deficit is more than 900 billion rupees or 1 percent of GDP. But Pakistan has shown a different calculation and shows that it is 400 to 450 billion rupees.
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