Minister of State for Finance and Revenue, Dr Aisha Ghaus Pasha, dismissed rumors of Pakistan’s withdrawal from the $6.5 billion IMF bailout program. Talks between the Federal Board of Revenue (FBR) and Finance Division continue, according to Pasha.
Reports claimed Pakistan’s tougher stance against the IMF, sparking speculation of a backtrack.
Pasha reaffirmed the government’s commitment to the program, noting the upcoming second budget presentation in June. She stressed the need to expand the tax base and shift to direct taxes for the next fiscal year.
Pakistan has been engaged in negotiations with the IMF in order to reinstate a $6.5 billion bailout program, crucial to avoid defaulting on its financial obligations. Pasha informed journalists that the coalition government plans to present its second budget since assuming power in April of last year during the first week of June.
The Finance Bill 2023-24 is scheduled to be tabled in the National Assembly on June 9, with the Economic Survey 2022-23 set to be released on June 8, according to sources from within the government.
While addressing concerns regarding the upcoming budget, Pasha cautioned that until the tax-to-GDP ratio reaches double digits, the situation will remain arduous, emphasising the necessity of expanding the tax base.
She stated that the Ministry of Finance plans to shift from indirect taxes to direct taxes, which would alleviate the burden on the common citizen. The government aims to implement direct taxation in the upcoming budget for the fiscal year 2023-24, expressing concern over the negative impact of tax concessions on the economy.
