The federal government’s proposed new budget has been criticized by the International Monetary Fund (IMF) for failing to seize an opportunity to expand the tax base. The draft budget was seen as a missed chance to broaden the sources of tax revenue, according to the IMF’s reservations.
IMF New Budget Concerns
During an interview with a channel, Esther Perez Ruiz, the International Monetary Fund (IMF) representative in Pakistan, conveyed her concerns regarding the new budget. She emphasized her willingness to collaborate with the government in order to enhance the budget before its approval. Ruiz expressed her readiness to work together with the government to address the shortcomings and make improvements to the proposed budget.
He placed particular emphasis on implementing measures aimed at alleviating the financial strain on the energy sector. He suggested that such measures would effectively decrease the resources needed for beneficiaries of the Benazir Income Support Programme (BISP).
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According to the IMF representative, the inclusion of an extensive array of new tax expenditures in the budget exacerbates the lack of transparency within the tax system.
Esther Perez Ruiz expressed her disapproval of the new amnesty scheme, deeming it contradictory to the terms of the loan program. She further asserted that the implementation of such a scheme establishes a detrimental precedent.