Finance Minister Muhammad Aurangzeb confirmed on Tuesday that the federal government will not impose a sales tax on petroleum products.
Speaking informally with reporters, Aurangzeb also hinted at optimism regarding Pakistan’s agenda for the $7 billion IMF bailout, as the IMF Executive Board is set to meet at the end of this month.
Moreover, Aurangzeb highlighted the critical role of public-private partnerships in driving development, acknowledging Pakistan’s financing gap of $3 to $5 billion during the ongoing IMF program.
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In addition, he assured that the gap is manageable, with efforts underway to reduce it. He noted that international commercial banks have made loan offers, but the Finance Ministry is carefully considering the interest rates to avoid high-interest loans.
In discussions about energy, Aurangzeb mentioned the necessity of appointing an adviser for talks on Independent Power Producers (IPPs) with China. He highlighted that Pakistan has already hired an advisor in China concerning the Panda Bond.
Additionally, Aurangzeb touched upon the ongoing digitisation of the Federal Board of Revenue (FBR) and the conversion of coal power plants to local coal, a project expected to take two to three years to complete.
