IMF satisfied with tax reforms in Pakistan, emphasizes on improving revenue

ISLAMABAD: The International Monetary Fund (IMF) has expressed satisfaction over tax reforms in various sectors, including agricultural income tax in Pakistan, and called for better tax collection measures in retail, wholesale, and real estate sectors.
Today is the last day of talks between Pakistan and the IMF on the next installment of the loan, during which a farewell meeting between Finance Minister Muhammad Aurangzeb and the IMF delegation is underway. Last night, an Iftar dinner was also hosted by the finance minister in honor of the delegation.
IMF’s emphasis on increasing revenue and reducing expenditure
According to sources, Pakistani officials are hopeful that the IMF mission will recommend the release of the next tranche of the loan, despite reservations in some areas. Meanwhile, the Federal Board of Revenue (FBR) has proposed a reduction in tax rates for the real estate and property sector to prevent the outflow of local capital.
The FBR has also given a written assurance to make the ongoing drive for registration of the business community more effective.
The IMF mission will return home today, but further negotiations will continue online. The financial institution will also issue a formal statement at the end of the talks, giving details about Pakistan’s economic policies and the conditions set.