IMF appreciates Pakistan’s ‘tough decisions’ in budget 2024-25

The International Monetary Fund (IMF) on Saturday appreciated Pakistan’s tough economic decisions in the 2024-25 budget.

According to these sources, Pakistan and the IMF have made significant progress in their virtual negotiations. The IMF expressed satisfaction with the challenging economic measures included in the budget and acknowledged the positive role played by political parties.

Sources also noted that the IMF appreciated the limitation of tax exemptions aimed at improving the economy.

The IMF delegation is expected to arrive in Pakistan for discussions on a new loan program in the last week of June, as the country has met the prior conditions. Additionally, the IMF expects the budget for the next financial year to be approved by June 28 or 29.

Earlier, Finance Minister Muhammad Aurangzeb presented Pakistan’s budget for the fiscal year 2024-25, with a total outlay of over Rs18 trillion, amid protests by opposition lawmakers from the Pakistan Tehreek-e-Insaf (PTI)-backed Sunni Ittehad Council.

The federal government proposed abolishing sales tax exemptions and concessions on various items, including mobile phones, copper, coal, paper, and plastic scrap, ARY News reported.

In his budget speech on the National Assembly floor, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb proposed a standard sales tax rate of 18 percent on various items.

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