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Provinces oppose removal of federal funded projects from PSDP

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Shoaib Nizami
Shoaib Nizami
Shoaib Nizami reports Finance, Fedeal Board of Revenue, Planning , Public Accounts, Banking, Capital Market, SECP, IMF, World Bank, Asian Development Bank, FATF updates for ARY News

ISLAMABAD: The governments of Sindh, Balochistan and Khyber Pakhtunkhwa have advised the centre to let the elected government decide on the provincial projects, ARY News reported on Friday citing sources.

The sources revealed that the three provinces advised the caretaker government to leave the decision of the provincial projects’ future to the elected government.

The sources said that Sindh and KP have opposed the halting of the provincial projects due to financial difficulties, while Balochistan has proposed to continue the projects under the Public Sector Development Programme (PSDP).

Sources further added that the NEC meeting, with the caretaker prime minister in chair, is scheduled to be held on January 29. The meeting will mull over halting 76 provincial projects with zero progress worth Rs121 billion and removing them from the federal development budget.

The meeting would also consider the proposal to impose a ban on releasing additional funds for the schemes of parliamentarians, said sources.

The Pakistan government has reportedly assured the International Monetary Fund (IMF) of imposing new taxes worth Rs18 billion, monthly, it emerged earlier.

Read more: Pakistan receives $700mn loan tranche from IMF

The sources say, the development comes after “do more” demands of the International Monetary Fund.

The government has assured the IMF of slapping additional taxes on textile and sugar to meet the expected shortfall in tax collection.

The caretaker government has shared a plan with the IMF regarding the increase in taxes. The Pakistan government has planned to fix tax collection target of Rs11,000 billion.

The government has proposed jacking up GST on textiles and leather goods to 18pc from 15pc.

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