WASHINGTON: Pakistani delegation comprising Secretary Finance Imdad Ullah Bosal and Governor State Bank of Pakistan Jameel Ahmed met with the Deputy Managing Director of the IMF Kenji Okamura in Washington DC.
The Pakistan delegation highlighted measures to expand fiscal space by broadening the tax base, aligning the provincial Agriculture Income Tax regime with the federal income tax regime, rationalizing subsidies, rightsizing the government, and reducing energy sector costs, the Finance Ministry in Islamabad said Tuesday.
“In the meeting with Kenji Okamura, Deputy Managing Director of the IMF, in Washington DC today, the Pakistan delegation highlighted measures to expand fiscal space by broadening the tax base, aligning the provincial Agricultural Income Tax regime with the federal income tax regime, rationalizing subsidies, rightsizing the government, and reducing energy sector costs,” the finance ministry said.
IMF spells out threats to reform momentum
It said discussions between the two sides also covered stimulating private sector development, building climate resilience and pursuing “prudent monetary and external sector policies.”
The finance delegation briefed the senior IMF officials about reforms taken by the government to broaden the country’s tax base and reduce energy costs, the finance ministry said on Tuesday, as Islamabad takes part in the ongoing annual World Bank and IMF meetings in the US.
Discussions also covered stimulating private sector development, building climate resilience through Resilience and Sustainability financing and pursuing prudent monetary and external sector policies.
“The need for steadfast implementation of reforms under the External Fund Facility [EFF] was also emphasized,” the ministry added.
Meanwhile, Pakistan’s delegation held a meeting with Director Middle East and Central Asia Department at the IMF in Washington Tuesday.
The delegation thanked the IMF for its continued support to Pakistan especially for the recently approved seven billion dollars Extended Fund Facility.
The Pakistani delegation outlined the Government’s efforts towards fiscal consolidation, revenue expansion, energy and SOE reforms, aimed at transitioning Pakistan from stabilization to growth. Congratulating Pakistan on the successful start of the Fund programme, Jihad Azour emphasized the importance of staying the course on reforms.
The IMF last month agreed to provide Pakistan a $7 billion loan program to bail out its crisis-ridden fragile economy. Islamabad has had to take painful measures to secure the loan, which included revisiting power deals with independent producers, increasing the tax net and removing subsidies for the poor.
After inflows from the IMF and a strong stock market performance, Pakistan’s liquid foreign exchange reserves surpassed the $16 billion mark this month, making it the first time in two years it had happened.