Islamabad: The International Monetary Fund (IMF) has raised objections to the government’s decision to exempt imported sugar from taxes, prompting officials to consider withdrawing the exemption altogether, reported Abbtakk TV.
The media report citing sources stated that the entire decision allowing duty-free import of sugar could soon be reversed. The IMF has expressed strong reservations, calling the move a violation of the country’s ongoing $7 billion loan program and warning that it could put the agreement at risk.
In response to the IMF’s concerns, the government is now reviewing the exemption policy. Earlier, the government had waived all duties on the import of 500,000 tonnes of sugar, citing efforts to control rising sugar prices.
Sources say the IMF has called the exemption a breach of the agreed terms, while the government argued that the import was carried out under a declared “food emergency.” However, the IMF reportedly rejected this explanation, the media report further added.
So far, the government has already imported 765,000 tonnes of sugar. Despite this, the price of sugar has surged past Rs 200 per kg, raising further questions about the effectiveness of the policy.
