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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: IMF says no new Pakistani agriculture tax Reuters - 36 minutes ago KARACHI, Nov 28 - The International Monetary Fund does not envisage Pakistan putting a new tax on agriculture, it said on Friday, adding policy measures underpinning its $7.6 billion loan will be published next week. The IMF approved the loan on Monday to help Pakistan avert a balance of payments crisis. Pakistan has got immediate access to $3.1 billion of the funds under the 23-month facility and the rest will be phased in subject to quarterly review. An agricultural tax has long been resisted by powerful landed families. "The IMF-supported programme does not envisage a new tax on agricultural income," the fund said in a release. "Over the medium term, efforts will be made to extend the effectiveness of the income tax." A senior IMF official said this week a cut in defence spending had not been discussed in the negotiations with the government. Pakistan is a front-line state in the U.S.-led campaign against militancy. The IMF said it would publish all policy measures in the programme by early next week. It said earlier the programme's objectives were "to restore overall economic stability and confidence through a tightening of macroeconomic policies, and second, to do so in a manner that ensures social stability and adequate support for the poor during the adjustment process". The IMF also said the fiscal deficit would be trimmed to 4.2 percent of gross domestic product in 2008/2009 and 3.3 percent in 2009/2010, compared with 7.4 percent in the fiscal year to June 2008. It said the central bank may tighten monetary policy to control inflation running at 25 percent. The fund wants inflation down to 6 percent by mid-2010. The fund targeted the current account deficit at 6.5 percent of GDP this fiscal year, and 5.7 percent in the 2009/10 fiscal year, compared with 8.4 percent in 2007/08. The IMF said it projected foreign exchange reserves to be $8.591 billion this fiscal year and $11.291 billion next year. Reserves were $6.6 billion in the week that ended on Nov. 22. The fund has also asked for an end to central bank financing of the government from Nov. 1. (Reporting by Sahar Ahmed; Editing by Robert Birsel/Ruth Pitchford) Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: Business Iceland changes foreign exchange rulesAP - 22 minutes ago US STOCKS-Futures slip on worry about consumer, energyReuters - 28 minutes ago European markets lower ahead of Wall Street returnAP - 29 minutes ago Emerging Markets-Stocks eye 2nd largest weekly gain, rupee downReuters - 30 minutes ago Report: China tycoon allegedly manipulated sharesAP - 32 minutes ago Most Popular – Business Viewed US clears Bank of America deal for Merrill Lynch US president's mother 'doing very well' in hospital: Laura Bush Love handles increase death risk: study Obama vows 'help is on the way' for the economy Michael Jackson strikes 'amicable' deal with Arab sheikh View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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