Pakistan Reinforces Economic Reform Without New Taxes Amid IMF Talks

Finance Minister Muhammad Aurangzeb announced that Pakistan discussed its $7 billion bailout reform agenda with the IMF, focused on taxation, energy sector, privatisation, and public finance, without imposing new taxes. The IMF was encouraged by Pakistan's commitment despite a $2.5 billion external financing gap and revenue shortfall.

The Finance Minister of Pakistan, Muhammad Aurangzeb, declared that the country reviewed its $7 billion bailout reform plan with the International Monetary Fund during an unexpected visit by IMF staff. The meetings, which are not typical ahead of formal review sessions, did not result in plans for new taxes, he asserted on Sunday.

This visit comes within weeks of the IMF board's initial bailout approval. Aurangzeb elaborated in a televised statement that the discussions covered key issues like the energy sector, the privatisation of state-owned enterprises, and broader public finance concerns.

The IMF concluded the visit on a positive note, stating that Pakistan's commitment to the reform agenda was reaffirmed, albeit with concerns of a significant revenue shortfall and inability to privatise the national airline. Efforts will focus on stricter tax compliance and tapping into new revenue sources to cover the gaps.

(With inputs from agencies.)