ISLAMABAD: Finance Minister Mohammad Aurangzeb reaffirmed the federal government’s dedication to assembly the targets of the International Monetary Fund (IMF) programme whereas advancing structural reforms geared toward stabilising Pakistan’s financial system.
Addressing an occasion in Islamabad, Aurangzeb outlined important progress in financial restoration, noting a discount within the present account deficit, a 70-month low in inflation, and optimistic indicators of financial enchancment.
He emphasised the significance of sustaining this momentum, stressing the necessity to construct on these achievements to strengthen the muse of long-term financial stability.
The finance minister mentioned that the federal government would supply coverage assist to boost personal enterprise, notably within the housing sector, which he recognized as a key financial driver.
The Ministry of Finance has reported that inflation in Pakistan had reached its lowest degree in six-and-a-half years. The ministry additionally projected improved monetary stability within the months forward, citing the consequences of ongoing reforms.
Despite these beneficial properties, challenges persist. Earlier this week, the finance ministry acknowledged its failure to satisfy three targets below the $7 billion Extended Fund Facility (EFF).
These included the Federal Board of Revenue’s (FBR) first-quarter income assortment targets and allocations for well being and training. Provincial governments additionally missed the October 2024 deadline to align their agriculture revenue tax laws with federal necessities.
The federal finance secretary, throughout a briefing to the National Assembly Standing Committee on Finance, outlined these shortfalls.
He famous that whereas Punjab has enacted the required tax reforms, Khyber Pakhtunkhwa’s laws is awaiting meeting approval. Taxation of agricultural revenue is predicted to begin on January 1, 2025.
To handle fiscal gaps, the federal government plans to introduce a 5% Federal Excise Duty (FED) on pesticides and fertilisers within the subsequent fiscal price range.
Additionally, the federal and provincial governments have agreed to redistribute spending tasks as per the 18th Constitutional Amendment.
These embody contributions to larger training, well being, and social safety, alongside efforts to boost tax assortment on companies, property, and agricultural revenue.
While progress on some IMF benchmarks has been gradual, the federal government is optimistic about regaining momentum in reforming the financial system and assembly long-term fiscal targets.
