ISLAMABAD – As deadlock continues unabated in the talks between Pakistan and the International Monitory Fund (IMF), the latter now openly criticised the government’s budget proposal.
The US-based lender expressed discontent with the budget presented by Sharif-led government, as according to IMF, the government missed the opportunity to widen the tax base which opposed its programme conditionality.
Proposing changes in the budget for FY24, IMF’s Resident Chief in Pakistan Esther Perez Ruiz said the staff remains engaged with the Pakistani government to mend policies.
IMF Resident Representative to Pakistan said the draft FY24 budget missed an opportunity to broaden the tax base in a more progressive way, and the list of new tax expenditures overshadows the fairness of the tax system and weakens the resources needed for greater support for vulnerable BISP recipients and development spending.
She called the new tax amnesty against IMF conditionality and agenda which creates a damaging precedent,
Pakistan’s plights increased further as the government failed to reach a consensus with IMF for much-needed bailout funds. The South Asian country is in dire need of the latest tranche of funds from its $6.5 billion programme.
IMF not satisfied with Pakistan s budget for FY24, pushes govt to increase taxes
