Pakistan close to securing $7bn IMF deal: FM

September 15, 2024 (MLN): Pakistan is close to securing its $7 billion loan program from the International Monetary Fund (IMF), Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, said on Friday.

Speaking at the 21st Annual Excellence Awards hosted by the CFA Society Pakistan, Aurangzeb stated, "I urge everyone to read this IMF agreement document, which will be made public after September 25."

He encouraged the public to read the document and review the structural benchmarks that have now been signed, which "his five predecessors were unable to achieve."

He emphasized that structural reforms are pivotal for ensuring sustainable economic growth and stability, forming a cornerstone of the government's policy agenda.

The Minister outlined these initiatives, which includes end-to-end digitization of the Federal Board of Revenue (FBR) to broaden the tax base and increase Tax-to-GDP ratio, reforms in the energy sector, and the restructuring of state-owned enterprises (SOEs).

These initiatives are aimed at enhancing economic stability and promote long-term growth.

The Finance Minister expressed optimism that this 24th IMF program could be Pakistan’s last, provided the country implements the agreed structural changes.

While explaining how the government intends to achieve the ambitious 40% tax growth target, he said the government plans to digitalize the taxation system, reducing human interaction and enhancing transparency.

He stressed that 43% of the people who contribute to GDP pay less than 1% in taxes. "It's simply not sustainable," he said.

Aurangzeb emphasized that reducing human interaction and enhancing transparency would lead to a reduction in corruption. He stated, "Countries cannot rely on charity/loans to function; we must run on taxes."

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