IMF Urges Pakistan to Successfully Complete Rightsizing to Cut Expenses

The International Monetary Fund (IMF) has urged Pakistan to implement right-sizing measures as soon as possible to cut government expenses, sources told ProPakistani. In a conversation with the Cabinet Division, the Ministry of Finance, and the Secretary Cabinet, the IMF emphasized completing the right-sizing exercise as part of a concrete plan to bridge any revenue shortfall in the next quarter. The Federal Board of Revenue (FBR) has been asked to enhance tax compliance under its Compliance Risk Management and Risk Improvement Plan. The IMF delegation was briefed on the large number of retailers in major cities that remain outside the tax net, as well as measures to recover outstanding dues from high-risk cases in Islamabad, Karachi, and Lahore. The review discussions also covered the performance of the power and petroleum sectors with the Ministry of Energy. The IMF delegation held talks with the State Bank of Pakistan (SBP) on the transition of the refinance scheme, development finance, and the operationalization of the Bank Resolution Framework to mitigate risks in the banking sector. The external sector and foreign exchange market were also assessed as part of the ongoing review.