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Pakistani Delegation Briefs IMF on Tax and Energy Sector Reforms in Washington
A Pakistani delegation updates IMF on tax and energy reforms, focusing on fiscal expansion and economic stability.
ND
by News Desk
2024-10-22
Pakistani Delegation Briefs IMF on Tax and Energy Sector Reforms in Washington

A high-level Pakistani delegation, led by the finance minister, briefed the International Monetary Fund (IMF) on Tuesday about the country's efforts to create fiscal space through various tax and energy sector reforms. The meeting took place in Washington with IMF’s Deputy Managing Director Kenji Okamura, according to a notification from Pakistan’s finance ministry.

 

The delegation highlighted several key measures, including the broadening of the tax base, the alignment of provincial Agriculture Income Tax (AIT) regimes with federal income tax policies, rationalization of subsidies, government rightsizing, and cost reduction in the energy sector. These steps are aimed at creating more fiscal room for the government to address pressing economic challenges.

 

The finance ministry further reported that the delegation also presented reforms designed to stimulate the private sector and emphasized the pursuit of a prudent monetary policy, alongside external sector adjustments. “Steadfast implementation of reforms under the Extended Fund Facility (EFF) was also emphasized,” the notification read.

 

The delegation, which includes senior officials such as the finance secretary, the economic affairs secretary, and the governor of the State Bank of Pakistan, is in Washington for a week-long series of high-level engagements with both IMF and World Bank officials. The meetings, scheduled from October 21 to October 26, are pivotal for Pakistan’s efforts to stabilize its economy, particularly in light of the IMF’s recent approval of a $7 billion loan.

 

In addition to their discussions with IMF officials, the Pakistani team will hold bilateral meetings with counterparts from key allies such as China, Saudi Arabia, and Turkiye. They are also expected to meet senior officials from the US Treasury Department.

 

Yesterday, the delegation met with Jihad Azour, IMF's Middle East and Central Asia Director, and shared the government's commitment to fiscal consolidation, revenue expansion, and reforms targeting energy and state-owned enterprises.

 

These discussions come at a crucial time for Pakistan, as the country navigates economic difficulties and seeks to secure further international support to bolster its financial position.
Tagged:

TaxReforms

PakistanEconomy

EnergySector

IMFMeetings

FiscalReforms
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