IMF urges Pakistan to broaden tax reforms and boost public investment

During a two-day workshop on modernising Pakistan’s tax system, the International Monetary Fund called for policies that go beyond meeting primary-balance targets. IMF official Jihad Azour argued that a broader, fairer and more predictable tax framework is essential for fiscal sustainability and to remove distortions that hinder investment and formal employment. He outlined priorities such as expanding the tax base, improving revenue administration, cutting unnecessary tax expenditures and protecting spending on key services.

Finance Minister Muhammad Aurangzeb pointed to achievements in macro-economic stability and confidence-building over the last two years. The IMF reaffirmed its commitment to support Pakistan in building a more productive, private-sector-led economy, noting that an uncertain external environment makes these reforms urgent. The workshop was jointly organized by the Ministry of Finance and Revenue and the IMF.