IMF says Pakistan’s 2024 budget a missed opportunity

An International Monetary Fund (IMF) on Thursday expressed dissatisfaction with Pakistan’s recently presented budget, a blow for the cash-strapped country which has only two weeks left until its bailout programme expires.

As per Reuters report, Pakistan has barely enough currency reserves to cover one month’s imports. It had hoped to have $1.1 billion of the funds released in November – but the IMF has insisted on a number of conditions before it makes any more disbursements.

Hours after the International Monetary Fund (IMF) expressed concerns about the government’s failure to broaden the tax base through the budget for the fiscal year 2023-24, Finance Minister Ishaq Dar said that Pakistan is a sovereign country and cannot accept everything the lender demands.

Addressing the Senate Standing Committee on Finance and Revenue, he responded to the IMF objection to the tax exemptions given in the recently unveiled budget.

“Pakistan is a sovereign country and cannot accept everything from the IMF,” the financial czar told the parliamentarians. He also added that as a sovereign country, Islamabad should have the right to give some tax concessions. “The IMF wants us not to give tax concessions in any sector.”

The finance minister of the country assured the senators that the government knew how much tax it needs to collect and form where the revenue can be generated. He added that this was the reason the government increased the tax target from Rs7.2 trillion to Rs9.2 trillion in the upcoming budget.

“This target is apart from tax exemption. No budget is coming from tax-exempt sectors. We will take the IMF into confidence on this,” he said while urging that Pakistan should be allowed to decide on the matter.

The minister also added that the government in the new budget is focusing on four drivers for economic growth.