IMF loan programme: Pakistan urged to widen tax base faster

Pakistan is under an IMF loan programme, and the fund's resident representative said the country must broaden its tax base and speed up reforms.

IMF Resident Representative Dr Mahir Binici urged Pakistan to broaden its narrow tax base and speed up structural reforms.

He said emerging economies such as Pakistan need revenue of at least 15 percent of GDP, and Pakistan remains well below that.

Provinces were urged to harmonise the General Sales Tax on services and tax agricultural income and real estate.

Combined health and education spending rose from around 2 percent of GDP, with a target of 2.8 to 3 percent this fiscal year.

The remarks came at the closing session of an SDPI conference on economic reforms and growth.

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