ISLAMABAD: Pakistan prepaid $1 billion of Chinese debt to secure its refinancing within this month. Sources said the IMF has raised questions over the viability of the budget figures, particularly the FBR’s non-tax revenue and tax collection targets, while also objecting to the Rs 7.3 trillion earmarked for interest payments.
Sources in the State Bank and Finance Ministry told The Express Tribune that the country on Monday repaid the $1 billion China Development Bank (CDB) loan, which was due on June 29.
Also Read: The federal government decided to make an advance payment to recover the debt within the current financial year ending June 30. The payment is part of the government’s efforts to increase foreign exchange through all available means, including the offer made to overseas Pakistanis that if they send remittances of up to $100,000, they are not asked for source of income.
will go However, a senior official at the country’s equity market and companies regulator warned on Tuesday that the amnesty scheme had increased the risk of money laundering, a development that came a day after Finance Minister Ishaq Dar told the Chinese embassy’s charge d’affaires. met and asked them 1. Requesting to fast-track the refinancing of $3 billion in trade loans, the finance minister also briefed the Chinese diplomat on the dwindling prospects of reviving the IMF’s loan program.
According to sources, the Chinese authorities have already assured Pakistan that they will refund both the loans, but Islamabad wants it to be re-loaned as soon as the loan is repaid. Pakistan is going to repay the loan of 300 million dollars to the Bank of China in less than two weeks. The Ministry of Finance and State Bank refrained from commenting on this news despite several attempts.
Meanwhile, the Senate’s Standing Committee on Finance has approved sending one hundred thousand dollars annually to Pakistan as remittances from abroad. The committee also supported imposing an advance tax of Rs 2 lakh on the income of overseas Pakistanis and two percent tax exemption on the purchase of immovable property for overseas Pakistanis, however, reducing the super tax from ten percent to seven percent on income over Rs 50 crore.
And it has been proposed to reduce the super tax rate from 8 to 6 percent on income above Rs 40 crore. In the meeting chaired by Salim Mandviwala, the committee opposed the imposition of 0.6% tax on transactions of Rs 50,000 for non-filers overseas. FBR officials say that the tax will be applicable on foreign domestic workers or helpers. 25,000 and advance tax of one percent was suggested.
