Mini budget on the horizon?

The prospects of success for Pakistan’s economic reforms under the International Monetary Fund (IMF) programme remain tenuous, with significant challenges ahead for the government and economy, opine business leaders. Earlier this month, Pakistan and the IMF reached a Staff-Level Agreement (SLA) for a $7 billion Extended Fund Facility. The IMF-mandated reforms included increases in tax revenues to 1.5 per cent of GDP in FY25 and 3pc over the 37-month programme. “Revenue collections will be supported by simpler and fairer direct and indirect taxation, including by bringing net income from the retail, export, and agriculture sectors properly into the tax system,” IMF’s statement said.