ISLAMABAD: The International Monetary Fund (IMF) has urged Islamabad to increase its tax base by targeting untapped revenue sources, as the South Asian nation grapples with issues in expanding its tax collection.
The IMF issued the statement as its mission led by Nathan Porter concluded a staff tour to Pakistan from November 12 to 15, during which the two sides reviewed the nation’s economic progress.
During the trip, the IMF team met with top officials from federal and provincial governments, the State Bank, and representatives from the private sector, the IMF press release said.
Staff trips are a standard practice for nations with semi-annual program reviews and aim to engage with the officials and other stakeholders on the nation’s economic developments and policies and the status of planned reforms, the statement said.
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Porter said that they had constructive talks with the authorities on their economic policy and reform efforts to decrease vulnerabilities and lay the basis for stronger and sustainable growth. He added that they agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases, while transferring greater social and development responsibilities to provinces.
Porter further said, “Structural energy reforms and constructive efforts are critical to restore the sector’s viability.”
“Strong program implementation can create a more prosperous and more inclusive Pakistan, improving living standards for all Pakistanis” he said.
The IMF said that they are encouraged by the authorities’ reaffirmed resolve to the economic reforms supported by the 2024 Extended Fund Facility (EFF). The next mission associated with the first EFF review is likely in the first quarter of 2025.
