The executive board of the International Monetary Fund (IMF) has stressed the “sustained implementation” of the new $7 billion bailout package for Pakistan, with a focus on broadening the tax base.

The IMF’s Executive Board made this statement following the approval of a 37-month Extended Fund Facility (EFF) for Pakistan, under which a $1 billion tranche has been disbursed. The agreement, Pakistan’s 24th with the IMF since 1958, includes reforms to widen its tax base, which were agreed upon by the government in July.

The recent statement by the IMF highlighted the importance of sustained program implementation and collaboration with development partners to mobilize additional financing and restore market access. Prime Minister Shehbaz Sharif has also approved measures for tax enforcement and compliance, including a ban on financial transactions for non-filers.

The IMF warned that without a concerted adjustment and reform effort, Pakistan may fall behind its peers. Continued financial support from development partners and additional financing assurances from China, Saudi Arabia, and the UAE will be critical for the success of the program.

Overall, Pakistan has made progress in restoring economic stability, with growth rebounding and inflation receding. However, challenges such as a narrow tax base and insufficient investment in key sectors remain.

This marks a significant milestone in Pakistan’s economic reform journey, with the IMF playing a key role in supporting the country’s efforts towards sustainable economic growth.