IMF slams tax-free sugar import

The International Monetary Fund (IMF) has reacted to a major breach of the $7 billion programme and conveyed its reservations about the government's decision to import 500,000 metric tonne of sugar by waiving taxes, in violation of written commitments. The development came as sugar prices officially hit Rs200 per kg for the first time in the country's history, according to the Pakistan Bureau of Statistics' (PBS) inflation bulletin released last Friday. Government sources told The Express Tribune that the IMF did not accept Pakistan's plea that the tax-free sugar import was justified due to a food emergency. The Federal Board of Revenue (FBR) had written to the IMF on behalf of the government. The supply situation tightened due to the government's earlier decision to export 765,000 metric tonnes of sugar. Sources said the IMF's reaction aligned with the finance ministry's assessment, which had forewarned of the $7 billion programme being "detracted" by two breaches.