Pakistan, IMF discuss major tax reforms to boost economic growth

October 20, 2026 (MLN): The Ministry of Finance and the International Monetary Fund (IMF) are holding a two-day high-level workshop in Islamabad on October 20–21, 2026, to discuss reforms aimed at modernizing Pakistan’s tax system and making it more supportive of sustainable economic growth.

The workshop, titled “Reforms for a Modern and Growth-Friendly Tax System in Pakistan,” brings together senior government officials, representatives of the IMF and World Bank, international tax experts, academics and private-sector leaders to identify priorities for improving tax policy and administration.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb delivered the opening remarks alongside Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, and Rodrigo Valdés, Director of the IMF’s Fiscal Affairs Department.

The discussions will cover six key areas, including the relationship between taxation and economic growth, modernization of Pakistan’s tax system, a unified sales tax regime across the federation and provinces, a simpler and more neutral income tax structure, digitalization of tax administration and taxpayer trust, and fiscal federalism and provincial tax revenues.

Participants will examine ways to develop a broader, fairer, simpler and more predictable tax system that strengthens revenue mobilization while supporting investment, business expansion and productivity.

The sessions will also address best practices in tax compliance and administration, alongside proposals for coordinating sales tax arrangements between federal and provincial governments and improving the design of income taxation.

The workshop will conclude with a high-level panel to consolidate recommendations, identify priority actions and establish arrangements for continued engagement among stakeholders.

The initiative reflects the government’s commitment to advancing tax reforms aimed at building a more efficient and growth-friendly tax system.

Copyright Mettis Link News