Sources say that the International Monetary Fund (IMF) has praised the strict economic measures spelled out in the budget, saying that they are necessary for keeping the economy stable.
The sources also say that the talks between Pakistan and the IMF have made progress. They said the Fund liked the tough choices that were made about the economy in Pakistan’s government budget and thought that political parties played a good role. The IMF has also liked that tax breaks are limited to help the economy grow.
The IMF has, however, repeated its call for economic discipline, even though the Federal Budget 2024–25 has been approved.
Sources also said that the IMF has asked Pakistan to raise the prices of gas and electricity by July 10, but they would rather see it happen by July 1, with quick action on NEPRA’s decisions to raise the prices of electricity.
In the next fiscal year, gas prices will go up to cut down on handouts, which is in line with what the IMF wants for new loan programs.
Around the middle of July, an IMF team will be in Pakistan.
Many people think the tax system is unfair, though, because Professor Adnan Khan, Chief Economist of the Commonwealth and Development Office (FCDO) of the UK, said again that the poorest 10% of citizens paid more of their income in taxes than the richest 10%.
