Pakistan should curtail budget deficit: IMF

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Pakistan should curtail budget deficit: IMF

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The IMF has advised Pakistan to curtail budget deficit to lower pressure on the monetary policy.

18 May,2011 10:02 am

In a statement issued from Dubai after talks with Pakistani officials, the International Monetary Fund (IMF) said that their talks with the government authorities would continue.The IMF also opined that there was a need to enhance tax base in Pakistan by introducing tax reforms. A subsidy cut has been introduced to the power sector while the standard of expenditures can be improved by allocation of additional funds in education, health, and infrastructure sectors. An IMF mission will visit Pakistan in July. Pakistan should also curtail budget deficit, the statement said.According to sources, in case the government fails to enforce Reformed General Sales Tax (RGST), then alternative means should have to be adopted to achieve revenue targets.Meanwhile, the government circles were hopeful of the issuance of remaining tranche of the IMF loan.