Though the fissures remain in talks between Pakistan and IMF over budget, the Pakistani rupee managed to gain some value against the US dollar in the lackluster interbank market on Thursday.As per the information obtained from foreign exchange dealers, the local currency was appreciated by 18 paisas against the greenback and was currently exchanging hands at Rs287. On Wednesday, the Pakistan rupee after three consecutive losses had gained some ground against the US dollar with an appreciation of 0.28% in the interbank market. At close, the currency had settled at 287.18, an increase of 79 paisas.

In a key development, the International Monetary Fund (IMF) has rejected the budget for the next fiscal year. IMF representative Esther Perez said that the IMF had been discussing policies with the Pakistani authorities to maintain financial stability in the country.“The opportunity to widen the tax net in next year’s budget proposals has been missed,” she said. “Introducing tax amnesty in the budget is a violation of the loan programme. The tax amnesty scheme can affect the loan programme,” she added.“A long list of tax exemptions has reduced the transparency in the tax system,” she pointed out.

“Steps could have been taken to solve the problems of the energy sector in the budget. A strategy to deal with liquidity pressures in the energy sector could be included in the budget,” she added. “Resources for the BISP have been reduced in the budget for the next financial year,” she said and added that the IMF was ready to work with the Pakistani government before the approval of the budget.

Credit: Independent News Pakistan-INP