ISLAMABAD: The International Monetary Fund (IMF) has urged Pakistan to take further economic measures, emphasizing the need for fiscal discipline during recent economic review discussions on Tuesday.
The IMF delegation called on the government to implement right-sizing strategies to curb excessive expenditures.
Additionally, it insisted on addressing a tax revenue shortfall exceeding 600 billion rupees, stressing the importance of bridging the gap to maintain economic stability.
“We have emphasised the need for the government to bridge the revenue gap and ensure the necessary fiscal measures are undertaken,” an IMF official stated. The delegation also requested a detailed plan from Pakistan to cover the shortfall in the upcoming quarter.
A key focus of the discussions was expanding the tax net, particularly by targeting large retailers in major cities like Islamabad, Karachi, and Lahore, who remain outside the tax system. The IMF also urged authorities to prioritize high-risk cases for tax recovery in these areas.
Talks further covered Islamic banking initiatives, procedural frameworks, and the transition of refinancing schemes, with senior officials from the State Bank of Pakistan participating. Additionally, the IMF delegation assessed Pakistan’s external sector and the current state of its foreign exchange market.
