IMF (International Monetary Fund) advised government to carry extra remedial steps during the most recent discussions on Pakistan’s economy.
The IMF delegation particularly advised that effective rightsizing policies be implemented to help the government concentrate on lowering unwanted expenses.
Another major worry noted during the conversations was the considerable tax revenue deficit of more than 600 billion rupees.
To deal with this problem, the IMF team emphasized the need of perfecting tax collection processes and guaranteeing that the administration carries out strong fiscal policies.
An International Monetary Fund representative said that closing the revenue gap was absolutely required to preserve financial stability and stop more economic suffering.
Besides asking Pakistan to fix the revenue gap, the IMF team asked for a detailed action roadmap defining concrete measures for handling this problem in the subsequent financial quarter.
One of the main subjects of debate was the need to broaden the tax net, especially for big merchants in big metropolis including Karachi, Lahore, and Islamabad.
Many of these companies were still outside the official taxation system, the IMF noted; this really helped to worsen the revenue shortfall.
Especially in these vital business centers, the delegation also noted the need of giving high-risk tax recovery cases priority.
Apart from tax concerns, the economic review discussions also covered several other financial sectors.
It included the constant development of Islamic banking and correlated administrative systems.
Senior State Bank of Pakistan officials discussed changing several refinance plans as well as enhancing the country’s development finance tools in meetings.
With particular attention to the state of the foreign currency market, the IMF mission also looked at the external sector of Pakistan.
Pakistan’s future financial stability was thought to be very dependent on the outcome of these discussions.
