Islamabad
The International Monetary Fund (IMF) has released the details of the agreement reached with Pakistan.
According to the report released by IMF, Pakistan has completed the implementation of FATF action plan.
The report said that Pakistan should investigate and punish the leaders of terrorist groups by the United Nations.
Report said to rectify the shortcomings in the financial system as pointed out by the APG, to control the amnesty scheme by the financial institutions for the construction sector and to reduce the rate of loan disbursement by the banks. The report stated that loans issued to the real estate sector at current rates could raise concerns about financial stability.
By the end of this month, the authorities should formulate a working group strategy consisting of stakeholders for mortgaging the property. Legal, regulatory and policy framework for state-owned enterprises should be formulated, report said.
Ownership of state-owned enterprises and better commercial operations should be approved by Parliament by June. Ownership of state-owned enterprises should be decided by amending the Policy Act, report stated.
The report said that financial risks should be reduced by improving the performance of state institutions.
Report further said that gradually the government should intervene in the economy and LNG power plants and two small public banks to be privatized.
The report said that important state institutions, including utility stores, should be audited in a timely manner.
Simplify the rules for starting a business the report said.
The report said that use of prize bonds should be reduced. Prize bonds are used for tax evasion and illegal activities.
The report said that a weak tax system hinders tax payments. Cross-border trade, difficulties in property registration. This increases the risk of corruption. Employment opportunities and investment are affected.
IMF demands that the tax payment process be made easier and take steps to improve the business environment.
The IMF has called for legal and regulatory reform and make the process of starting a business easier.
The IMF has also called for the removal of unnecessary regulations.
