IMF 'objects' to tax exemption on sugar imports
Business
Sources revealed that the IMF warned such measures could jeopardize the ongoing $7 billion loan
ISLAMABAD (Dunya News) – The International Monetary Fund (IMF) has expressed strong reservations over Pakistan’s decision to grant tax exemptions on sugar imports, terming it a clear violation of the loan agreement.
Sources revealed that the IMF warned such measures could jeopardize the ongoing $7 billion loan programme.
In response, the government argued that the import of sugar was being carried out under a “food emergency,” but the IMF rejected this explanation, reiterating that the exemption contradicts the agreed terms.
Following the IMF's objections, the government is now considering reversing the tax exemption on sugar imports and may potentially cancel the import decision altogether.
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Sources also noted that the cabinet approved the import without seeking input from the Ministry of Finance. Now, the withdrawal of tax exemptions granted to the private sector is also under review.
It's worth mentioning that for the first time in the country’s history, sugar prices have crossed Rs200 per kg.
To stabilise the market, the government had announced a duty-free import of 500,000 metric tonnes of sugar.
Meanwhile, the Trading Corporation of Pakistan (TCP) has already floated a tender for importing 300,000 metric tons, with the bid submission deadline set for July 18.
