Federal Finance Minister Muhammad Aurangzeb has said that the cutting-edge. International Monetary Fund (IMF) application will not be closed if Pakistan does not grow its tax revenue. Pakistan’s IMF Application Hinges on Tax Revenue Growth.
Dependency on imports Pakistan’s
In an interview with Financial Times – a British magazine – he said the fear of “bribery, corruption, and harassment” stops people from coming to deal with the Federal Board of Revenue (FBR). He also highlighted that heavy reliance on imports means borrowing more money to service debts.
Aurangzeb’s optimism Pakistan’s
He hoped a staff-level agreement could be reached with the IMF by May. However, he emphasized that Pakistan cannot show results over five years as it does not have a five-year plan; instead, it must do so in two-three months.
Debt repayment capacity
The finance minister also stressed the need for Pakistan’s debt repayment capability: “We will need to go back [to lenders] again and again until we are import-dependent.” He called for boosting domestic revenue through effective tax collection to break this cycle.
Challenges with FBR
According to him, bribery and corruption at FBR are among the major impediments to increasing taxation. The government must tackle these systemic issues to instill public confidence about paying taxes.
Strategic measures for economic stability
Pakistan must take strategic steps to achieve economic stability, such as reducing import dependency while enhancing domestic production. This realignment would cut down external borrowing requirements but, more importantly, improve self-reliance in terms of the economy.
The urgency of economic reforms
His comments suggest that policymakers like him are aware of how urgent these reforms should be implemented, given their potential impact on stabilizing our financial situation and meeting IMF targets in the future without going through another painful period when much ground has already been covered.
