Pakistan set for tax hikes in return for massive IMF bailout

By MUNIR AHMED
Associated Press

ISLAMABAD (AP) — Officials and analysts say cash-strapped Pakistan will impose billions in new taxes to help secure a massive bailout, but they warned the move could cause inflation to escalate. The grim outlook came as the impoverished nation prepares to impose taxes of 170 billion rupees in a bid to convince the International Monetary Fund to revive a $6 billion bailout. Last week, the IMF delayed the release of a crucial $1.1 billion portion of the bailout that has been on hold since December over Pakistan’s failure to meet the terms of a previous deal. The stalemate in talks was seen as a blow to the government of Prime Minister Shahbaz Sharif, who is struggling to avoid a default.