A Pakistani delegation led by Finance Minister Muhammad Aurangzeb on Tuesday briefed the International Monetary Fund (IMF) on steps taken to expand fiscal space through tax and energy sector reforms.
In a notification, the finance ministry confirmed that the delegation met IMF’s Deputy Managing Director Kenji Okamura in Washington and “highlighted measures to expand fiscal space through broadening the tax base, re-aligning provincial AIT [Agriculture Income Tax] regime with federal income tax regime, rationalising subsidies rightsizing the government, and reducing energy sector costs”.
Furthermore, the finance ministry said that the team briefed the IMF on measures to stimulate the privator sector and pursue a prudent monetary policy, in addition to external sector policies.
“Steadfast implementation of reforms under the EFF [Extended Fund Facility] was also emphasised,” the notification read.
Besides the finance minister, the delegation comprises the finance secretary, the economic affairs secretary, the governor of the State Bank of Pakistan, and other senior officials in Washington. They are expected to engage in high-level talks with IMF and World Bank officials during their week-long visit.
It is important to note that the delegation’s agenda includes bilateral meetings with counterparts from China, Saudi Arabia, Turkiye, and other friendly nations, as well as discussions with senior US Treasury Department officials. The IMF and World Bank meetings are set to run from Oct 21 to Oct 26.
This year’s meetings hold particular significance for Pakistan, following the IMF’s recent approval of a $7 billion loan intended to help stabilise the country’s struggling economy.
The Pakistani delegation met IMF’s Middle East and Central Asia Director Jihad Azour yesterday and outlined the government’s efforts to move towards fiscal consolidation, revenue expansion, energy & state-owned enterprises reforms.
