IMF Programme to Stabilize Pakistan’s Economy, Says Finance Minister

Pakistan Unveils Ambitious Tax Plan to Secure $7 Billion IMF Loan,

ISLAMABAD(Business Reporter): IMF Programme to Stabilize Pakistan’s Economy, Says Finance Minister, Finance Minister Muhammad Aurangzeb on Saturday said that the newly inked bailout deal with the International Monetary Fund (IMF) will help achieve macroeconomic stability.

The finance minister made the remarks after the cash-strapped country reached a 37-month, $7 billion aid package deal, with the Washington-based institution, giving much-needed respite to the struggling economy.

Pakistan is set to implement a comprehensive tax strategy aimed at generating an additional Rs 3,724 billion over the next three years to recover a $7 billion loan from the IMF. The government has committed to increasing tax revenue by 1.25% this fiscal year, with a strong focus on bringing the agricultural sector into the tax net.

Documents from the Ministry of Finance reveal that the plan will also impose additional taxes on retailers and exporters while cracking down on non-filers and ensuring trader registration. Key strategies include expanding the tax net through digitization and gradually phasing out various subsidies.

PSX Crosses 80,000 Points, Hits Record High Amid IMF Bailout Hopes

In line with IMF requirements, electricity and gas tariffs are expected to rise as part of the scheduled reforms to facilitate tax collection. The staff-level agreement reached between Pakistan and the IMF marks a significant step forward, with the international body agreeing to provide the loan over a 37-month period.

This ambitious plan underscores Pakistan’s commitment to fiscal stability and economic reform in the face of ongoing financial challenges.