A Pakistani delegation recently met with the International Monetary Fund (IMF) in Washington to discuss the country’s efforts to expand fiscal space through tax and energy sector reforms. The delegation highlighted measures such as broadening the tax base, aligning provincial AIT with federal income tax, reducing subsidies, and cutting energy sector costs.
In addition, the team briefed the IMF on plans to stimulate the private sector, pursue a prudent monetary policy, and address external sector policies. Emphasis was placed on the steadfast implementation of reforms under the Extended Fund Facility (EFF).
The delegation, including the finance minister and other high-ranking officials, also plans to hold discussions with IMF and World Bank officials, as well as representatives from China, Saudi Arabia, Turkey, and other friendly nations. These meetings come at a crucial time for Pakistan, following the approval of a $7 billion IMF loan to help stabilize the economy.
The delegation’s agenda focuses on fiscal consolidation, revenue expansion, and energy and state-owned enterprise reforms as they work towards improving Pakistan’s financial outlook.