IMF urges Pakistan to broaden tax net, rationalise concessions to turn economic stability into sustainable growth

The IMF has called on Pakistan to widen taxation to lightly taxed sectors, review concessions and ease uneven tax burdens, according to Profit by Pakistan Today. Speaking at a Finance Ministry workshop, IMF official Jihad Azour said recent progress on economic stability should be followed by reforms that support lasting growth, better revenue collection and private-sector activity.

Azour said tax-policy changes needed to be paired with simpler rules and stronger revenue administration, while noting risks from dearer international energy and food, trade disruptions and tighter global financing. Finance Minister Muhammad Aurangzeb said the government was targeting sustainable, export-led expansion rather than consumption-driven growth, and cited a shift from an approximately 0.3% contraction to growth of around 3.65% to 3.7%.

Aurangzeb also said import cover had risen from about two weeks to more than three months, while stressing the quality and durability of reserve accumulation. The discussion links tax design and implementation with Pakistan's growth strategy, public investment and resilience to external pressures.