Finance ministry seeks relief from IMF, rules out mini-budget

ISLAMABAD (Mudassar Ali Rana) –The Ministry of Finance is preparing to seek relief from the International Monetary Fund (IMF) during the review talks in light of flood-related damages.

According to sources, Prime Minister Shehbaz Sharif has directed the Finance Ministry to negotiate relief in achieving the IMF’s set targets.

Sources said the discussions will cover avoiding a mini-budget, revising revenue targets, and making adjustments to the macroeconomic framework.

The government will argue that instead of introducing a mini-budget, strict implementation of existing tax measures will help increase revenue.

If the IMF does not agree with the proposed revenue measures, the option of imposing a flood levy may be considered, sources added.

Alongside this, the Finance Ministry will try to persuade the IMF to allow concessions in view of the flood damages. Talks are also expected to touch on a minor downward revision in the economic growth target.