ISLAMABAD (PEN) : Federal Finance Minister Muhammad Aurangzeb cautioned that Pakistan would remain in the cycle of IMF programs unless taxes are raised,
Speaking to the Financial Times, he underscored that “the upcoming IMF program will not be our final funding initiative unless we bolster our tax revenues.”
Aurangzeb expressed optimism about Pakistan finalizing a staff-level agreement with the IMF this month, estimating its value at $6-8 billion. He acknowledged the country’s heavy reliance on imports leading to a debt cycle, emphasizing the need to enhance loan repayment capabilities.
Highlighting concerns over the Federal Board of Revenue (FBR), citing corruption and harassment issues dampening tax compliance, he stressed the necessity for the government to demonstrate significant progress in the next 2-3 months to tackle Pakistan’s economic challenges.
Previously, the International Monetary Fund commended Pakistan’s tough economic decisions and efforts, particularly in increasing gas prices. During their recent visit led by Mission Chief Nathan Porter from May 13 to May 23, the IMF delegation discussed economic reforms and affirmed their commitment to fostering sustainable economic growth through the Extended Fund Facility (EFF) program.
Pakistan has successfully met targets outlined in the Standby Arrangement Agreement, paving the way for a new loan program to stabilize the economy.
