Pakistan-IMF to kick off formal discussions from tomorrow

May 12, 2024 (MLN): Formal discussions between Pakistan and the International Monetary Fund (IMF) will kick off from tomorrow for a longer and bigger program.

Finance Minister Muhammad Aurangzeb made this remark during his speech at the Pre-Budget Conference organizated by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Sunday.

Highlighting the objectives behind the program, Aurangzeb emphasized the need to solidify the existing macroeconomic stability and implement structural reforms.

These reforms will primarily focus on three key sectors: the tax-to-GDP ratio, the state-owned enterprises (SOEs) reforms, and energy.

The Finance Minister assured to expand the tax base through digitization of tax collection processes, aiming to bring under-taxed and untaxed sectors into the tax base.

He said McKinsey has been tasked to digitize the entire tax ecosystem, with immediate implementation slated to start at the Federal Board of Revenue (FBR) tomorrow.

Aurangzeb stressed that with lesser human interaction, there would be greater transparency.

Regarding SOEs, Aurangzeb stated that there is no such thing as 'strategic SOEs', stressing the need for privatization.

He revealed plans to engage with various ministries to expedite the transfer of SOEs to the private sector.

Aurangzeb said that there will be a public-private partnership and "we will accelerate the privatization agenda."

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