The International Monetary Fund (IMF) has labelled Pakistan’s tax collections unsatisfactory and warned that a mini-budget might be necessary if the situation does not improve.
According to details, the IMF has clearly communicated to the Government of Pakistan that it must meet all conditions for the loan. Otherwise, the government must implement a mini-budget and avoid any actions that could affect budget targets.
The IMF stated that decisions regarding privatising Pakistan International Airlines (PIA) and electricity distribution companies will align with the new IMF program and its conditions. It emphasized that the market should determine the dollar exchange rate in Pakistan.
The Pakistani government is taking measures to tackle inflation and striving to enhance the efficiency of its tax machinery.
The IMF refrained from commenting on speculations regarding a change in Pakistan’s political government, stating that it does not comment on political matters. It emphasized that Pakistan must address its political challenges independently.
The IMF also avoided commenting on whether the new loan program for Pakistan would be the last, stating that it depends on the program’s success. The IMF acknowledged that agreements with Independent Power Producers (IPPs) are causing economic difficulties and that the timeline for releasing instalments of the new IMF package is in the preparation stages.
