By Web Desk 
The International Monetary Fund (IMF) has urged Pakistan to adopt a fairer taxation system and broaden its tax base to address fiscal challenges and promote economic stability. On September 28, 2024, the IMF released its latest assessment of Pakistan’s economic situation, highlighting the need for reforms to improve tax collection and reduce the country’s fiscal deficit.
Key Recommendations from the IMF
- Broadening the Tax Base: The IMF recommends expanding the tax net to include sectors that have traditionally evaded taxation, such as agriculture and real estate. By doing so, Pakistan can increase its revenue without burdening existing taxpayers.
- Progressive Taxation: The IMF emphasizes the need for a progressive tax system where high-income earners pay a fair share of taxes, reducing inequality and ensuring a more equitable distribution of wealth.
- Strengthening Tax Administration: The IMF has suggested that Pakistan should invest in modernizing its tax administration, using technology to track transactions, and minimize tax evasion.
Governmentās Response
The Pakistani government has acknowledged the IMF’s recommendations, with Finance Minister Ishaq Dar stating that efforts are underway to introduce reforms that will address these concerns. The government plans to introduce new policies aimed at expanding the tax base, reducing exemptions, and promoting transparency in tax collection.
Public Reaction
The call for a fairer taxation system has sparked debate among Pakistani citizens, with many expressing support for reforms that target wealthier individuals and corporations. However, there are concerns about how these changes might affect the middle class and small businesses.