The International Monetary Fund (IMF) has asked Pakistan to increase its tax base by bringing the real estate, agriculture, and services sectors into the tax net, said senior economy journalist Khurram Husain.
While appearing on the programme on Naya Daur TV, Husain said that the conditions finalized between Pakistan and the IMF will not reflect much in the upcoming budget as the programme is set to expire in April, adding that the budget will be formulated thereafter.
It is pertinent to mention here that the IMF agreed to a Staff-Level Agreement (SLA) with Pakistan on the final evaluation of a $3 billion bailout, under which the country will receive $1.1 billion after approval by the Fund's Executive Board.
While responding to a question, Husain said that in the next negotiation, the IMF will stress the need for broadening the tax net, controlling expenditures, and managing circular debt.
He mentioned that the government should take concrete steps to ensure recoveries and reduce losses in the power sector; otherwise, the tariff will further increase and the public will bear a huge burden.
The journalist said that the IMF has asked Pakistan to increase its tax base by bringing the real estate, agriculture, and services sectors into the tax net.
He added that the international lender has also urged Pakistan to revisit the National Finance Commission (NFC) award.
While responding to a question regarding the chances of recovery of the country’s economy through IMF assistance, the journalist said that there are no such chances, adding that the primary function of the IMF is to prevent default in countries whose economies are fragile.