Stocks falter as govt prepares for IMF talks

KARACHI: The stock market snapped its four-day winning streak as investors resorted to profit-taking following reports that the new government has begun preparations to engage the International Monetary Fund (IMF) for the start of final review under the current $3bn Stand-By Arrangement (SBA) and negotiating a fresh Extended Fund Facility. The country is faced with numerous economic issues mainly the balance of payments and the new government is also well aware of implementation challenges of new conditions associated with the release of the last tranche of $1.1bn under the SBA. The IMF has proposed liberal imports, a doubling of taxes for both salaried and non-salaried individuals to the Federal Board of Revenue. Additionally, it recommends raising the general sales tax rate to 18pc for various essential items such as unprocessed food, stationery, medicines and POL products.