IMF urges Pakistan to tap untaxed agriculture, property sectors to boost revenues

The IMF has urged Pakistan to collect more tax from farm income, property and provincial services, identifying these areas as potential sources of revenue for public spending. Speaking at the SDPI’s 29th Sustainable Development Conference, IMF Resident Representative Dr Mahir Binici said provinces should strengthen their own collections and align GST on services across the country.

Binici said developing economies need revenue equal to at least 15% of GDP to fund public services, while Pakistan remains well below that level. He also called for higher and more efficient spending on health and education, and said energy costs, taxes and overlapping obligations were holding back business expansion and foreign investment. The IMF backed energy-sector changes, including tariff adjustments, stronger electricity distribution governance and greater private-sector involvement through privatisation.