Pakistan delegation briefs IMF on tax, energy sector reforms

In a notification, the finance ministry confirmed that a delegation met with IMF Deputy Managing Director Kenji Okamura in Washington, where they discussed various measures aimed at expanding fiscal space. These included broadening the tax base, aligning the provincial Agriculture Income Tax (AIT) with the federal income tax system, rationalizing subsidies, streamlining government operations, and reducing energy sector costs.

Additionally, the finance ministry noted that the team briefed the IMF on strategies to stimulate the private sector and implement a prudent monetary policy, alongside external sector policies.

The notification also emphasized the importance of the “steadfast implementation of reforms under the Extended Fund Facility (EFF).”

The delegation, led by the finance minister, includes the finance secretary, the economic affairs secretary, the governor of the State Bank of Pakistan, and other senior officials. They are expected to hold high-level talks with officials from the IMF and World Bank during their week-long visit to Washington.

The delegation’s agenda also features bilateral meetings with representatives from China, Saudi Arabia, Turkey, and other friendly nations, along with discussions with senior officials from the US Treasury Department. The IMF and World Bank meetings will run from October 21 to October 26.

This year’s meetings carry particular significance for Pakistan, following the IMF’s recent approval of a $7 billion loan aimed at stabilizing the country’s economy. Yesterday, the Pakistani delegation also met with Jihad Azour, Director of the IMF’s Middle East and Central Asia department, where they outlined government efforts toward fiscal consolidation, revenue growth, and reforms in energy and state-owned enterprises