ISLAMABAD, November 16, 2024 – The federal government has ruled out the possibility of a mini-budget, following the conclusion of the International Monetary Fund’s (IMF) staff mission to Pakistan.
Finance Minister Senator Muhammad Aurangzeb dismissed reports suggesting the imposition of additional taxes, affirming that no such measures would be introduced.
The IMF delegation, led by Nathan Porter, completed a four-day visit to Pakistan from November 12 to 15.
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While the in-person meetings have concluded, virtual discussions are ongoing to finalize certain issues, according to the finance minister.
Aurangzeb described the talks with the IMF team as “constructive and productive,” with both sides engaging in open and fact-based dialogue.
He said that objectives of the fund visit was not to review the overall economy but to build confidence. He added that the IMF appeared satisfied with Pakistan’s position and the discussions that took place.
The IMF, in its own statement, acknowledged the challenges Pakistan faces in expanding its tax base. The global lender emphasized the need for Pakistan to tap into untapped revenue sources to bolster its tax collection efforts.
The IMF mission noted that such staff visits are part of standard practice for countries under semi-annual program reviews.
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These visits serve to engage with local authorities and stakeholders about ongoing economic developments, policies, and the status of planned reforms.
Porter further explained that the talks centered around Pakistan’s ongoing economic policy and reform efforts, particularly in areas aimed at reducing vulnerabilities and laying the foundation for sustainable growth.
He also highlighted the need for continued fiscal and monetary discipline, as well as efforts to increase revenue generation through previously untapped sources.
Additionally, the IMF called for a greater transfer of social and development responsibilities to Pakistan’s provinces.
The IMF also stressed the importance of structural reforms in Pakistan’s energy sector, which it described as critical for restoring the sector’s long-term viability.
In its statement, the IMF expressed encouragement over Pakistan’s reaffirmed commitment to the economic reforms outlined under the 2024 Extended Fund Facility (EFF), noting that the authorities have shown a strong willingness to implement necessary measures for economic stabilization.