The Finance Minister, Aurangzeb, has stated that Pakistan will remain in the IMF cycle until taxes are increased.

During an interview with Financial Times, he stated that if we fail to increase our tax revenues, the forthcoming IMF programme will not be our final fund project.

Aurangzeb expressed his optimism that Pakistan will achieve a staff-level agreement with the IMF in the current month, estimating the value of the accord to be between $6-8 billion.

The individual recognised that the government’s dependence on imports has resulted in a recurring pattern of indebtedness and borrowing, emphasising the necessity of improving the nation’s capacity to repay loans.

The minister also highlighted the absence of confidence in the Federal Board of Revenue (FBR) as a result of corruption and harassment, asserting that individuals are reluctant to fulfil their tax obligations due to these concerns.

Aurangzeb stressed the importance of the administration delivering tangible results over the next 2-3 months to tackle the financial difficulties faced by the country.

Pakistan’s difficult economic decisions and efforts to increase petrol prices were acknowledged by the International Monetary Fund.

The fund’s mission, headed by Mission Chief Nathan Porter, visited Pakistan and engaged in comprehensive conversations from May 13 to May 23 to discuss the country’s economic progress.

The International Monetary Fund mission expressed its unwavering dedication to collaborating towards achieving long-lasting economic growth. The statement highlighted that Pakistan’s economy would achieve stability through the assistance of the Extended Fund Facility (EFF) programme.

Pakistan has effectively achieved the objectives outlined in the Standby Arrangement Agreement, which will provide assistance for the upcoming loan programme.