Finance Minister Muhammad Aurangzeb has stated that he will seek the approval of parliament to allow the government to raise its tax revenue collection.
“Taxes will be paid by individuals. Speaking on the floor of the National Assembly, the finance minister stated, “I will ask parliament to continue supporting the government’s efforts to raise tax revenue and to improve the energy equation.”
Worried about Pakistan’s 9% tax-to-GDP ratio, Aurangzeb informed the house that structural changes are the only course of action available to the nation.
His comments coincide with Islamabad’s official request to the IMF, made a few days ago, for a new rescue package under the Extended Fund Facility (EFF) with potential for augmentation through climate funding. The package was to be valued at between $6 and $8 billion.
But the precise scope and duration won’t be known until May 2024, when an agreement has been reached on the main features of the next program.
Pakistan has expressed interest in the EFF program and requested that an IMF review team be sent in May 2024 to finalize the specifics of the next three-year bailout package.
Speaking about the nation’s foreign exchange reserves, the finance minister mentioned that Islamabad had $3.4 billion in reserves at the time the current administration took office. But he also mentioned that Pakistan now has $8 billion in foreign exchange reserves and would shortly get $1.1 billion from the International Monetary Fund (IMF).
