Pakistan needs to mobilise tax revenue for development spending: IMF

The International Monetary Fund (IMF) on Friday said Pakistan needs to increase its domestic tax revenue in order to fund development.

In a press briefing on Thursday, IMF Director Communications Gerry Rice said, “One of the key elements of the program that the IMF is supporting in Pakistan, Pakistan’s program, is the need to mobilise domestic tax revenue to fund much needed social and development spending while placing debt on a firm downward trend.”

Rice further said this was something that was emphasised by acting the fund’s Managing Director David Lipton during his recent meeting with Prime Minister Imran Khan.

“Let me add that we expect an IMF team to be in Pakistan in the next few days, including our Director for that area, Jihad Azur will be there,” he said.

The team will visit Pakistan on Sep 16 to review the government’s economic performance during the first quarter of the current fiscal year.

The State Bank of Pakistan (SBP) had received $1 billion from the IMF on July 10 as the first tranche of a bailout package for balance of payment support.