ISLAMABAD: International Monetary Fund (IMF) Representative Ishtar Perez has said that Pakistan has made policy mistakes and strong policies are needed for successful implementation of the new debt program.
Addressing the function organized by SDPI, Ishtar Perez said that the scope of taxation will be expanded through the IMF program, the agricultural sector will be brought under the tax net under the new program, the support prices of food grains will be reduced. Government controls in the determination of income will be removed while tax revenue from the retail and real estate sectors will be increased.
The IMF representative said that a better and more effective tax system must be created while protecting the social sector. The new IMF program aims to promote private sector-led growth, reduce energy prices through structural reforms. Downsizing is part of the program.
Ishtar Perez said that despite stability in the past years, structural challenges were faced, Pakistan made policy mistakes, every program aims to improve policies, so strong policies are needed for the successful implementation of the new loan program.
He added that while energy sector and industrial policies support the domestic market, distortions arise when special treatment is given to a particular segment.
In response to a question, the representative of the IMF said that we have tried to help Pakistan in every way, we stay away from politics, our aim is only to look at the policies and the economy.
He said that the tax system is important for any country, we are not questioning or reversing the NFC award, we are saying that it is an important factor which has not been fully implemented.
