ByIslamabad, Pakistan: The International Monetary Fund (IMF) has called on Pakistan to end preferential treatment and tax exemptions for the agriculture and textile sectors, which it considers to be hindering the country’s economic growth.
The IMF’s staff report highlighted that these two sectors have consumed large portions of public funds while remaining inefficient and uncompetitive. The report emphasized the need for Pakistan to break from its past economic practices and diversify its export base to achieve sustainable growth.
The IMF identified the textile sector as having the highest tax gap relative to its value added. It recommended that the government focus on simplifying trade policies and avoid using tariffs to protect inefficient sectors. Dawn
The report also criticized the government’s interventions in the agriculture sector, which have trapped resources in low-productivity activities. The IMF urged the government to remove these distortions and allow for a more level playing field for businesses.
The IMF’s recommendations aim to help Pakistan improve its economic competitiveness, diversify its exports, and enhance its living standards.
