IMF receives briefing from Pakistani delegation on tax, energy sector reforms

Islamabad: A Pakistani delegation Tuesday briefed the International Monetary Fund (IMF) on steps taken to expand fiscal space through tax and energy sector reforms.

The delegation outlined the government's efforts towards fiscal consolidation, revenue expansion, and energy & SOE reforms. Moving Pakistan from stabilisation to growth. Congratulating Pakistan on the successful start of the Fund programme, he emphasized the need to stay the course of reforms.

According to a notification, the finance ministry confirmed that the delegation met IMF’s Deputy Managing Director Kenji Okamura in Washington and “highlighted measures to expand fiscal space through broadening the tax base, re-aligning provincial AIT [Agriculture Income Tax] regime with federal income tax regime, rationalising subsidies rightsizing the government, and reducing energy sector costs”.

(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 team also briefed the global lender on measures to stimulate the private sector and pursue a prudent monetary policy, in addition to external sector policies.

“Steadfast implementation of reforms under the EFF [Extended Fund Facility] was also emphasised,” the notification read.

Discussions also covered stimulating private sector development, building climate resilience through Resilience and Sustainability financing and pursuing prudent monetary and external sector policies.

Meanwhile, Pakistan's delegation held a meeting with the Director Middle East and Central Asia Department at the IMF in Washington today.

The delegation thanked the IMF for its continued support to Pakistan especially for the recently approved seven billion dollars Extended Fund Facility.

The Pakistani delegation outlined the Government’s efforts towards fiscal consolidation, revenue expansion, energy and SOE reforms, aimed at transitioning Pakistan from stabilisation to growth.

Congratulating Pakistan on the successful start of the Fund programme, Jihad Azour emphasized the importance of staying the course on reforms.