IMF urges Pakistan to move beyond fiscal targets

The International Monetary Fund (IMF) has urged Pakistan to shift its fiscal policy beyond primary balance targets and debt sustainability, emphasizing the need for policy credibility, economic recovery, and public investment. IMF Middle East and Central Asia Department Director Jihad Azour stressed the importance of tax reform during a workshop on "Reforms for a Modern and Growth-Friendly Tax System in Pakistan," which was organized by the Ministry of Finance and Revenue.

Azour pointed out that Pakistan has made significant progress in restoring macroeconomic stability, rebuilding confidence, and strengthening external buffers despite facing various shocks and uncertainties. He called for a broader, more predictable, fairer, and more transparent tax system that would support fiscal sustainability while reducing distortions that hinder investment, productivity, growth, and job creation.

Azour highlighted four key themes for the workshop: credibility, growth, fairness, and implementation. He affirmed the IMF's commitment to help Pakistan build a more competitive, investment-friendly, and inclusive economy that can deliver higher productivity and better opportunities for future generations.