October 10, 2001	Wednesday	Rajab 22, 1422

ISLAMABAD, Oct 9: The International Monetary Fund (IMF) has deferred its conditionality of levying 15 per cent General Sales Tax (GST) on tractors and tube wells, which was to come into force from October 1 for release of last standby tranche of $131 million, officials sources told Dawn here on Tuesday.

“The decision is believed to have been taken to provide every possible help to Pakistan to revive its economy as Islamabad pledged to provide full support to international community in combating terrorism in the aftermath of terrorist attacks in the US,” the sources said.

It was agreed with the Fund under the stand-by arrangement that by the end of September, GST net would be extended to all agricultural inputs under the International Monetary Fund’s conditionality for last stand-by arrangement tranche.

They informed that it was believed that the levy of GST would fetch about Rs1.4 billion to the national exchequer during the current financial year.

The sources said that an ordinance to this effect was already drafted, which was due to be promulgated in the first week of the current.

When asked whether IMF would also defer levy of GST on domestically produced cooking oil and vegetable ghee, which would come into effect from December 1, 2001 as agreed under SBA, the sources said, “we have not received any information about this so far,” however, they said that due to slump in the market in the aftermath of US led strike on Afghanistan, the Fund may also defer this conditionality.