Islamabad, Pakistan: The International Monetary Fund (IMF) has called on Pakistan’s provinces to implement tax reforms and contribute to fiscal consolidation efforts.
The IMF emphasized the importance of reorganizing federal-provincial fiscal relations through the National Fiscal Pact and strengthening revenue mobilization through taxation of property and agricultural income.
The report highlighted the need for robust tax administration to ensure effective implementation and improved compliance. The Public Sector Development Program (PSDP) also requires reforms for efficient public investment management.
The IMF noted that provinces are committed to contributing to public finances and have agreed to achieve a primary surplus of around 1% of GDP in fiscal year 2025. Business Recorder
The National Fiscal Pact will devolve specific federal spending responsibilities to the provinces, while provinces will also take steps to increase their own tax collection efforts.
The IMF’s recommendations aim to improve Pakistan’s fiscal management and strengthen its economy.
