Finance Minister Muhammad Aurangzeb expressed confidence in government progress toward meeting the International Monetary Fund’s (IMF) structural benchmarks, saying it “is in the right place” in this regard.
“We have signed the National Fiscal Pact, whereas, legislation regarding agriculture income tax, after being passed by Punjab and Khyber Pakhtunkhwa, has been approved by Sindh.
“Balochistan will come in as well,” he added.
In a major development on the taxation front, the Sindh cabinet on Monday approved the Agricultural Income Tax Bill 2025. The bill will come into effect from January 2025.
Talking about the upcoming IMF’s six-month review, the finance minister, while addressing the Islamabad Chamber of Commerce, was hopeful that the review “will be in good stead”.
Aurangzeb hints at tax reforms for Pakistan’s salaried group
The IMF mission is expected to reach Pakistan by the end of February or early March for the first review of the $7 billion Extended Fund Facility (EFF) programme.
According to the IMF report released in October, the proposed schedule for the first review under the EFF and end-December 2024 performance/continuous criteria is March 15, 2025.
Aurangzeb on Monday reiterated that the government has commenced the budget-making process, and remains in talks with various stakeholders.
“We have preponed the entire budget discussion, so in the coming 1-2 months we can move ahead with a consultative process.”
“We are under an IMF programme, so we know what our constraints are,” he added.
The finance minister said that the government remains committed to enhancing its tax-collecting capacity, adding that progress on reforms in the Federal Board of Revenue (FBR) continues.
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