The International Monetary Fund (IMF) commended Pakistan on Saturday for its stringent fiscal measures in the 2024-25 budget.
During virtual negotiations between Pakistani officials and representatives of the International Monetary Fund (IMF), the IMF commended Pakistan for the challenging economic measures incorporated in its fiscal year 2024-25 budget. The Fund particularly appreciated the positive engagement of political parties, which played a pivotal role in shaping these fiscal policies.
The IMF also valued Pakistan’s reduction of tax exemptions to bolster the economy. It anticipates the budget’s ratification by June 28 or 29. An IMF team is slated to visit Pakistan in the final week of June to initiate a new loan program following Pakistan’s fulfilment of preliminary conditions.
In a tumultuous session marked by opposition protests from the PTI-backed Sunni Ittehad Council, Finance Minister Muhammad Aurangzeb presented an Rs18 trillion budget. The government’s fiscal strategy included removing sales tax breaks on several products, such as mobile phones and coal, and standardizing the sales tax rate at 18 per cent.
Additionally, the budget proposed higher import duties on luxury cars exceeding $50,000 and steel and paper products. The IMF had earlier urged Pakistan to enhance tax collection across provinces, apply taxes to agricultural and stationary products, increase monthly pension taxes, and raise the gas, electricity, and general sales tax rates to 18 per cent.
 has expressed satisfaction with Pakistan's tough economic decisions in the 2024-25 budget, noting significant progress in virtual negotiations and the pivotal role of political parties.){kind=link}