IMF Urges Pakistan to ‘Do More’ in Economic Review Talks

Islamabad-(Mudassar Iqbal)-The International Monetary Fund (IMF) on Tuesday urged Pakistan to take additional measures during recent economic review talks.

The IMF delegation called for timely right-sizing initiatives to curb expenditures and pressed the government to address the tax revenue shortfall exceeding 600 billion rupees.

According to the IMF team, these actions were critical for maintaining fiscal discipline and stability in the economy. “We have emphasised the need for the government to bridge the revenue gap and ensure the necessary fiscal measures are undertaken,” an IMF official said.

The delegation also requested a detailed plan from Pakistan to cover the revenue shortfall in the upcoming quarter.

The IMF team had also highlighted the importance of expanding the tax net, particularly by targeting large retailers in major cities such as Islamabad, Karachi and Lahore, who were still outside the reach of the tax system.

In a briefing, the IMF delegation emphasised the urgency of addressing high-risk cases for tax recovery in these areas.

The discussions also touched on Islamic banking initiatives and procedural frameworks.

Senior officials from the State Bank of Pakistan participated in talks regarding the transition of refinancing schemes and the development finance mechanism.

Additionally, the IMF delegation assessed the external sector and the current situation of the foreign exchange market in the country.

The outcomes of the talks were seen as crucial for Pakistan’s future economic stability.