IMF urges Pakistan to increase tax revenue and continue economic reforms

Summary: IMF Country Representative Mahir Baneji has advised Pakistan to continue reforms to widen the tax net, increase the tax-to-GDP ratio and increase exports. Addressing the SDPI conference, he said that Pakistan has come out of the economic crisis and towards stability, however, for sustainable development, focus on private investment, infrastructure and development projects is necessary.

Karachi: After economic stabilization in Pakistan, tax reforms, increase in exports and promotion of private sector investment are necessary to maintain the pace of growth. International Monetary Fund (IMF) Country Representative Mahir Baneji has urged the government to continue the process of increasing tax revenue and improving the tax-to-GDP ratio.

Addressing the SDPI conference, Mahir Baneji said that Pakistan is currently going through a crucial phase in its economic history. The country has made progress from the economic crisis to stability, however, continuous implementation of reform measures is necessary to maintain this success.

He said that serious efforts have been made to improve the economy during the past several months. According to him, the economic growth rate is increasing from 2 percent to 3.5 percent, which is a positive development.

Expert Baneji said that despite the ongoing crisis in the Middle East, Pakistan has continued its journey of economic development. The IMF will continue to cooperate with Pakistan for long-term economic stability.

Terming the increase in exports as important for creating new employment opportunities, he said that Pakistan should focus on improving its export capacity and increasing access to global markets.

The IMF representative also described the National Tariff Policy as important for economic improvement and said that reforms in trade policy can benefit the country’s economy.

He added that without an increase in tax revenue, it would be difficult for the government to meet development needs. Therefore, the process of increasing the tax-to-GDP ratio and expanding the tax system should continue. IMF officials have also held meetings with Pakistani officials in this regard.

Expert Baneji also emphasized the need to improve infrastructure and allocate adequate financial resources for public development projects. According to him, to convert economic stability into sustainable growth, attention should be paid simultaneously to reforms, investment and increase in exports.

The IMF’s latest Economic Survey Report of October 2026 also described Pakistan’s fiscal reforms, improving the tax system, promoting private investment and exports as important for sustainable economic growth. According to the report, Pakistan’s real economic growth in the fiscal year 2026 is estimated at 3.6 percent.