Development spending under the federal Public Sector Development Programme (PSDP) remained weak during the first five months of the current fiscal year, with utilisation reaching only 9.2 per cent of the annual allocation. The slowdown reflects fiscal rationing as the government works to meet contingency measures agreed with the International Monetary Fund (IMF). Read More: […]
Fiscal Policy
Pakistan seeks IMF approval for proposed tax relief package
Pakistan’s high taxation policies are increasingly seen as a barrier to investment and economic growth, prompting the government to propose a Rs975 billion tax-relief package under IMF oversight. Officials and business leaders hope that the Fund will allow fiscal flexibility to help the country unlock its productive capacity and stimulate job creation. Read More: Pakistan […]
Takaichi unveils $135B stimulus as markets shiver
Japan approved a 21.3 trillion yen stimulus package on Friday, marking Prime Minister Sanae Takaichi’s first major policy move since taking office. The plan reflects her pledge to use aggressive fiscal spending to revive growth. It includes 17.7 trillion yen in general account outlays and the biggest stimulus since the COVID era. Markets reacted nervously […]
Pakistan trims government debt by Rs852 billion in September
KARACHI – Pakistan’s government successfully reduced its debt by Rs852 billion in September, according to a report released by the State Bank of Pakistan (SBP) on Thursday. This move comes as authorities aim to ease the country’s fiscal pressures. The SBP data revealed that the government’s total debt stood at Rs76,605 billion by the end […]
Govt to hold key meeting with provinces
ISLAMABAD: The federal government has scheduled a consultative session with provincial representatives on November 18 to discuss the International Monetary Fund’s (IMF) proposed amendments to the National Finance Commission (NFC) Award, sources revealed on Thursday. According to sources, the meeting — initially planned earlier but postponed due to provincial requests — will focus on the […]
Government establishes Tax Policy Office under IMF plan
ISLAMABAD — The federal government has officially launched a Tax Policy Office (TPO) aimed at reforming Pakistan’s tax framework and aligning it with the International Monetary Fund (IMF)’s structural reform requirements. According to the Finance Ministry, key appointments have been finalized, and the office will begin work next week to develop tax policies for the […]
Pakistan, IMF agree to cut tax target by Rs150 billion
ISLAMABAD: The government has reached an agreement with the International Monetary Fund (IMF) to reduce Pakistan’s tax collection target by Rs150 billion, official sources confirmed on Thursday. According to Federal Board of Revenue (FBR) officials, the target has been revised down from Rs14.131 trillion to Rs13.981 trillion for the current fiscal year. The IMF, however, has […]
IMF Raises Concern Over $6 Billion Annual Trade Data Discrepancy in Pakistan
ISLAMABAD – The International Monetary Fund (IMF) has raised concerns over a $6 billion annual discrepancy in Pakistan’s trade data during staff-level discussions for the $7 billion loan agreement, highlighting inconsistencies that have alarmed policymakers. According to official sources, the Pakistan Bureau of Statistics (PBS), which operates under the Ministry of Planning, has so far […]
Pakistan Eyes IMF Staff-Level Agreement During Aurangzeb’s US Visit
ISLAMABAD: Authorities are optimistic about concluding a staff-level agreement (SLA) with the International Monetary Fund (IMF) during Finance Minister Muhammad Aurangzeb’s upcoming visit to the United States. The agreement hinges on consensus regarding Pakistan’s external account and the verification of flood-related losses and their fiscal distribution among federal and provincial accounts. Officials confirmed that the […]