Islamabad Pakistan's Finance Minister Muhammad Aurangzeb said on Thursday the government hoped to reach a deal with the IMF this month to secure a new bailout package, and claimed talks with the global lender were progressing "positively." .
Dollar-hungry Pakistan is turning its back on the limit to get the International Monetary Fund (IMF) deal for more than $6 billion.
"Talks with the IMF are progressing positively," said the Minister of Finance during a briefing before the Standing Committee on Finance of the National Assembly.
He expressed optimism about positive progress in talks between Islamabad and the Washington-based global lender to reach a staff-level agreement on a new bailout program in July.
He said the IMF is forcing Pakistan to make difficult decisions, including new taxes already imposed in the budget.
"The Fund requires taxes on real income, which is fair," said the minister.
Stating that no country could function with a tax-to-gross domestic product (GDP) ratio of 9 per cent, Aurangzeb pledged to raise the ratio to 13 per cent.
Last month, the government presented the Rs 18,877 trillion tax-laden budget for fiscal year 2024-25 (FY25), aiming to shore up public revenue to satisfy the IMF.
However, the IMF is still said to be unhappy and wants to impose more taxes on the agricultural sector, which was largely allowed to pay a nominal tax in the past.
The minister, addressing the standing committee, further stated that some changes were being made in the structure of military service and stated that the entire structure needed amendments.
He said that a contributory pension system will be launched for Pakistan's armed forces.
The finance minister said the system had been notified for civil servants from July 1, 2024; However, as of July 1, 2025, a new pension plan will be applied for the military.
"Those who join the service on or after July 1 will receive their pensions under the new plan," he added.
Aurangzeb also said that all economic indicators remained positive during the last fiscal year, while foreign exchange reserves remained well above $9 billion.
Dollar-hungry Pakistan is turning its back on the limit to get the International Monetary Fund (IMF) deal for more than $6 billion.
"Talks with the IMF are progressing positively," said the Minister of Finance during a briefing before the Standing Committee on Finance of the National Assembly.
He expressed optimism about positive progress in talks between Islamabad and the Washington-based global lender to reach a staff-level agreement on a new bailout program in July.
He said the IMF is forcing Pakistan to make difficult decisions, including new taxes already imposed in the budget.
"The Fund requires taxes on real income, which is fair," said the minister.
Stating that no country could function with a tax-to-gross domestic product (GDP) ratio of 9 per cent, Aurangzeb pledged to raise the ratio to 13 per cent.
Last month, the government presented the Rs 18,877 trillion tax-laden budget for fiscal year 2024-25 (FY25), aiming to shore up public revenue to satisfy the IMF.
However, the IMF is still said to be unhappy and wants to impose more taxes on the agricultural sector, which was largely allowed to pay a nominal tax in the past.
The minister, addressing the standing committee, further stated that some changes were being made in the structure of military service and stated that the entire structure needed amendments.
He said that a contributory pension system will be launched for Pakistan's armed forces.
The finance minister said the system had been notified for civil servants from July 1, 2024; However, as of July 1, 2025, a new pension plan will be applied for the military.
"Those who join the service on or after July 1 will receive their pensions under the new plan," he added.
Aurangzeb also said that all economic indicators remained positive during the last fiscal year, while foreign exchange reserves remained well above $9 billion.
