IMF Loan Revival Around The Corner, Claims Miftah.

ISLAMABAD -- Federal Minister for Finance and Revenue Miftah Ismail on Monday said that an agreement to revive the loan programme with International Monetary Fund (IMF) is expected to be finalized within a day or two.

'I am very hopeful that the IMF programme will be revived within a day or two,' said the Finance Minister while talking to the media after a meeting of the Senate Standing Committee on Finance and Revenue yesterday.

He clarified that IMF has nothing to do with the salary increase of the government's employees in the annual budget. 'IMF has no relation with the increase in salaries. Also, the tax exemption to the people earning below Rs1.2 million [annually] will remain in place'. However, the wealthy people should pay their due tax, he added.

Talking about the proposed taxes on property, the Finance Minister said that the government would withdraw taxes once construction starts on an empty plot. 'Lay one brick on the empty land and the taxes will be lifted. But we will not impose a tax on anyone who has not acquired the possession of a plot or has not received the permission to start construction on it,' Miftah explained.

He further clarified that if a person has been granted permission to start construction on a piece of land and they still do not begin building something on it, then they will have to pay the tax.

The Senate Standing Committee on Finance, Revenue and Economic Affairs was held here at Parliament House under the chairmanship of Senator Saleem Mandviwala. Officials of Pakistan Pharmaceutical Association informed the Federal Minister of Finance about their concerns regarding non-payment of sales tax refund. Former Finance Minister Shaukat Tarin informed the committee that their government had introduced reforms for documenting the pharmaceutical sector. He explained that the pharmaceutical sector is not only manufacturing medicines but they are also making juices and cosmetic items and enjoying tax relief on the name of...