The International Monetary Fund (IMF) has advised the Pakistani government to impose taxes on stationery items, including books, pens, and paper. The lender has requested the government to remove tax exemptions on these items. The Federal Board of Revenue (FBR) officials are scheduled to brief the Prime Minister tomorrow on the FY 2024-25 budget proposals.
Recommendations and Proposed Changes in budget 2024-25 Pakistan
Pakistan’s FY 2024-25 budget may phase out sales and income tax exemptions. A proposed sales tax on tractors and pesticides could raise their prices. Pesticides registered with the Department of Plant Protection currently enjoy a sales tax exemption.
IMF’s Official Statement and Negotiations
On Monday, the IMF released an official statement following discussions with Pakistani officials. The statement confirmed that Pakistan has formally requested a new loan program from the IMF. An IMF delegation, led by Mission Chief Nathan Porter, visited Pakistan from May 13 to May 23 to review the country’s economic progress.
The Pakistani government is striving to boost revenue and ensure fair tax collection. The IMF reaffirms its support for Pakistan’s economic growth via the EFF program.
Pakistan has successfully met the targets set under the Standby Arrangement Agreement, which supports the new loan program. The IMF underscored the need to expand the tax net to ensure economic growth and stability. It called for appropriate policy and exchange rate measures to control inflation and stressed the critical need for energy sector reforms.
Energy Sector and Monetary Policy
Reducing the cost of energy production is crucial, and the IMF recommended a stringent monetary policy until inflation is under control. The statement also highlighted the need to improve the performance of state-owned enterprises and suggested that privatizing these corporations is essential for better efficiency.
 has advised the Pakistani government to impose taxes on stationery items, including books, pens, and paper. The lender has requested the government to remove tax exemptions on these items. The Federal Board of Revenue (FBR) officials are scheduled to brief the Prime Minister tomorrow on the FY 2024-25 budget proposals.){kind=link}