Washington (TDI): A Pakistani delegation in a briefing on Tuesday updated the International Monetary Fund (IMF) about measures that have been taken to expand fiscal space through tax and energy sector reforms.
The finance ministry has already, in a notification, 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”.
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According to the ministry, the team briefed the IMF on measures to stimulate the privator 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 ministry notified.
The delegation comprises of the finance minister, the finance secretary, the economic affairs secretary, the governor of the State Bank of Pakistan, and other senior officials in Washington.
This is a week-long visit to Washington and high-level talks with IMF and World Bank officials is expected.
Moreover, bilateral talks with counterparts from China, Saudi Arabia, Turkiye, and other friendly nations, as well as meetings with US Treasury Department officials is also on the agenda. The IMF and World Bank sessions are set to run from Oct 21 to Oct 26.
The meetings, viewed crucial for the country’s ailing economy, are followed by the IMF’s recent approval of a $7 billion loan aims to assist stabilization the country’s economic health.
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The Pakistani delegation also met IMF’s Middle East and Central Asia Director Jihad Azour a day earlier, outlining the government’s efforts to move towards fiscal consolidation, revenue expansion, energy and state-owned enterprises reforms.
