According to a spokesperson from the Finance Division, Pakistan’s economic situation and its current debt dynamics indicates that there is no need of IMF or any other international program for financial assistance in the foreseeable future.
The spokesman disclosed that the share of direct taxes has reached up to 40 percent of the total tax collected in fiscal year 2016/2017. This figure is likely to increase due to several policies and administrative reforms taken by the current government, which can help with the expansion of tax base.
He added that a few news reports have presented the negative side of economy and have overlooked and disregarded the positive side while falsely claiming that the country needs to re-enter into IMF program.
Better Economic Conditions
He commented in response to those reports by mentioning that according to ADB, Pakistan’s economic condition is enhancing regardless of the contraction in trade, and this fact has been acknowledged internationally. Improvements have also been recorded in exports and remittances.
Here are some other major points that were also touched upon:
- Exports have increased 12.89 percent in August 17 as compared to the same time period last year.
- An increase of 14.41 per cent has been recorded in exports over the month of July 2017 compared to July 2016.
- FY2018 exports have registered a growth of 11.80 per cent.
- The workers remittances have also been increased by 13.18 percent amidst the months of July and August.
Moreover, he also pointed out the upward trend observed in FDI as it has increased by over 162.8 per cent in July 2017.
Taxation Rates Continue to Climb Up
He further revealed that the share of direct taxes in total taxes has also been increased. The upward trend can be observed with the help of the data recorded:
- 1990-1991: 20 percent.
- 2004-2005: 31.1 percent.
- 2012-2013: 38.2 percent.
- 2015-2016: 39.1 percent.
- 2016-2017: 40 percent.
Considering the gathered data and research, the Finance Division has concluded that Pakistan certainly is not facing any such crisis which would compel it to rejoin the IMF.