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Summary Despite levying so many taxes, the government could not get the last tranche of IMF loan.
Pakistan’s current standby programme with the International Monetary Fund has ended incomplete like several other programmes in past.Despite levying so many taxes to comply with the conditions of the IMF, the government could not get the 31% money of the approved loan by the IMF.The IMF approved the current loan programme of $11.30 billion in November 2008 but Pakistan could get only $7.80 billion until the extended deadline of September 30.The government and the IMF are still in disharmony over the imposition of value added tax, reforms in power sector and reduction in deficit.Pakistan has been made 11 loan agreements with the IMF during the time of various governments but apart from two occasions, December 1989 and November 2000, the country could never get the complete promised loans.Pakistan has to start returning the IMF loan from the end of this year as the country is scheduled to pay $140 million until December.The repaying of the current programme will start from February 2012 and a total of $2.41 billion has to return in 2012, $3.9 billion in 2013 and $2.22 billion in 2014.The interest payment of the current standby programme will be completed in May 2015.
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