IMF urges Pakistan to expand its tax base

The International Monetary Fund (IMF) has concluded constructive talks with Pakistani authorities on economic reforms. Both sides have agreed to increase revenue generation.

From November 12 to 15, the parties discussed a $7 billion bailout programme whose first tranche was landed in Pakistan’s account six weeks ago after the approval by its executive board. 

"We are encouraged by the authorities' reaffirmed commitment to the economic reforms supported by the 2024 EFF," Reuters quoted Nathan Porter, the chief of the IMF's Pakistan mission, who led the talks, said in a statement.

Moreover, he said that they discussed the country’s efforts to reduce vulnerabilities that would help the economy to strengthen again.

However, he did not state the lapses and weaknesses that the finance department said unfolded as failures before the IMF in fulfilment of its demands, such as a shortfall in revenue generation of about $190 million in the first quarter of the current fiscal year.

Losses of billions of dollars in the power sector were also discussed, on which the IMF expressed a need for structural reforms soon. 

Following the four-day-long discussions both sides expressed consensus to continue prudent fiscal and monetary policies to mobilise revenue from the generation.