Pakistan to rigorously implement structural benchmarks agreed with IMF: finance minister

Pakistan Finance Minister Muhammad Aurangzeb has said Pakistan will rigorously implement and enforce structural benchmarks agreed with the International Monetary Fund (IMF) under the new $7 billion Extended Fund Facility.

These include improving the tax-to-GDP ratio, reforming the energy sector and State-Owned Enterprises (SOEs).

In an interview with Voice of America (VoA) Voice of America (VoA), Aurangzeb acknowledged that the tax burden on the salaried class and manufacturers was heavy, and resolved that the tax net would be broadened to include agriculture, real estate, distribution, and wholesale sectors.

He emphasized the necessity of enhancing compliance and enforcement to eliminate leakages and corruption, warning that failure to do so would result in repeated financial crises. Aurangzeb announced plans to eliminate the term "non-filer" from the tax system, stating that the country cannot afford non-filers. He emphasized the need to document the economy fully, aiming to double its size.

While acknowledging the transitional pain, he stressed that moving in this direction is crucial for the country's long-term stability. He assured that the Federal Board of Revenue (FBR) would not harass taxpayers or extract bribes, and mentioned that the government has comprehensive data on citizens' spending and tax payments, which is being reconciled to ensure fairness and transparency.

The finance minister noted the significant role of the United States, the largest shareholder of the IMF, in supporting Pakistan's case before the IMF. He also highlighted the substantial investments from the US and the European Union, Pakistan's major trading partners.