Finance Minister Muhammad Aurangzeb confirmed on Tuesday that the federal government will not impose a sales tax on petroleum products. In an informal conversation with reporters, he also mentioned that the International Monetary Fund (IMF) Executive Board is set to meet at the end of this month, expressing cautious optimism about Pakistan’s $7 billion bailout agreement reached last month. Aurangzeb noted that Pakistan is facing a $3 to $5 billion financing gap during the current IMF program but assured that the gap is manageable and efforts are being made to address it. He added that international commercial banks have offered loans, though the Finance Ministry is carefully evaluating the interest rates to avoid high-cost borrowing.
Regarding energy discussions with China, Aurangzeb highlighted the need for an adviser to handle negotiations on Independent Power Producers (IPPs). He also mentioned that Pakistan has appointed an adviser in China for the Panda Bond.
Aurangzeb briefly discussed the ongoing digitization of the Federal Board of Revenue (FBR) and the conversion of coal power plants to local coal, a process expected to take two to three years.
