IMF delegation meets OICCI, big businesses seek tax relief, long-term policy clarity

A visiting International Monetary Fund delegation met leading multinational and local corporations under the platform of the Overseas Investors Chamber of Commerce and Industry (OICCI) to discuss Pakistan’s economic outlook, taxation policies and reform priorities, according to a news report. 

The IMF team, led by Iva Petrova and Mahir Binici, held discussions with chief executives of around 15 major corporations on the second day of its two-week review mission. The talks focused on Pakistan’s performance under the programme and the broader investment climate.

Business leaders acknowledged progress in macroeconomic stabilisation, citing stronger fiscal consolidation, improved primary balance discipline, a stabilised external account, moderating inflation and resilience in the financial sector. They also noted improvements in Pakistan’s credit ratings.

However, representatives urged a shift from stabilisation to sustained export-led growth supported by a coordinated medium-term reform strategy. They called for a comprehensive National Economic Plan integrating fiscal, trade, industrial, energy and human capital policies with clear milestones and coordination between federal and provincial governments.

Participants expressed concern over high taxation, including super tax, corporate tax and levies on the salaried class. Some firms said tax burdens were consuming a large share of profits. Business leaders also raised issues related to energy costs and inefficiencies in distribution companies, urging early privatisation to improve performance.

Exports have declined by more than 7% during the first seven months of the current fiscal year, according to participants, who requested time-bound tax and other incentives to support export recovery.

Concerns were also raised about tax evasion, with representatives saying the formal sector struggles to compete with undocumented segments of the economy. IMF officials indicated that broadening the tax base would take time and stressed the need for phased economic growth to avoid past imbalances.

The delegation also discussed the recently introduced captive energy policy, with IMF representatives indicating that certain aspects are under review.

An OICCI statement said the discussions covered Pakistan’s economic trajectory and foreign investor perspectives. OICCI President Yousaf Hussain said macroeconomic gains must now translate into productivity, employment and investment through a structured reform programme.

OICCI Secretary General M Abdul Aleem highlighted the need for greater policy predictability, regulatory coherence and investment-focused reforms. He called for a rationalised tax and tariff framework, avoidance of retrospective taxation, timely clearance of refunds and simplified compliance procedures.

The meeting reflected continued engagement between the IMF mission and the business community as the Fund reviews Pakistan’s economic performance and reform agenda.