Islamabad: A Pakistani delegation met with the International Monetary Fund (IMF) on Tuesday to discuss measures aimed at expanding fiscal space through comprehensive tax and energy sector reforms.
During the meeting, which included IMF’s Deputy Managing Director Kenji Okamura in Washington, the delegation outlined the government’s initiatives for fiscal consolidation, revenue growth, and reforms in the energy and State-Owned Enterprises (SOE) sectors. They emphasized the importance of transitioning Pakistan from a stabilization phase to one focused on growth.
(1/2) Pakistan delegation held a meeting with Mr. Jihad Azour, Director MCD at the IMF today. Thanking the IMF for continued support to Pakistan, especially for the recently approved US$7 billion Extended Fund Facility. pic.twitter.com/479ertSjbd
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 21, 2024
The finance ministry confirmed that the delegation highlighted key strategies to broaden the tax base, align the provincial Agriculture Income Tax (AIT) regime with the federal income tax system, rationalize subsidies, right-size the government, and reduce costs within the energy sector.
In addition to fiscal measures, the team briefed the IMF on efforts to stimulate the private sector and maintain a prudent monetary policy, alongside strategies related to the external sector.
The notification stressed the significance of steadfastly implementing reforms under the Extended Fund Facility (EFF) to ensure sustainable economic progress.