Pakistan is focused on fulfilling the stringent conditions set by the International Monetary Fund (IMF) ahead of its first economic review, with an IMF mission scheduled to visit the country in early 2025, sources disclosed.
According to official documents, the government is determined to achieve key targets, including:
- Tax Revenue Goals: Collecting Rs6,009 billion by December 2024 and Rs9,168 billion by March 2025, with no new tax amnesties or concessions for any sector.
- Asset Declaration: Amending the Civil Servants Act by February 2025 to require government officials and their families to declare their assets.
- Provincial Taxes: Initiating tax collection on provincial agricultural income.
- Risk Management: Introducing risk management systems in major tax units in Islamabad, Karachi, and Lahore.
Key Reforms and Measures
- A 5% duty on fertilizers and pesticides in the next fiscal budget.
- An additional Rs3,000 stipend for Benazir Income Support Programme (BISP) beneficiaries, with future adjustments linked to inflation.
- Publication of a Governance and Corruption Assessment Report by July 2025.
- Energy sector liabilities capped at Rs417 billion, with tax refunds limited to Rs24 billion.
- Gas supplies to captive power plants will cease by January 2025, alongside measures for privatizing two power distribution companies (DISCOs).
The government has also pledged not to approve supplementary grants without parliamentary consent and to maintain zero credit reliance on the State Bank of Pakistan. Steps toward gradually downsizing public institutions are also in progress.
During a Finance Committee meeting, the Finance Ministry reiterated its commitment to macroeconomic reforms and assured successful completion of the 37-month IMF program.
Foreign Exchange Goals
Pakistan aims to boost foreign exchange reserves to cover three months of imports, a critical requirement for sustaining the IMF bailout program.
“The government remains fully committed to achieving the IMF’s targets,” a Finance Ministry spokesperson confirmed.