Minister of State for Finance Ali Pervaiz Malik on Wednesday said Pakistan has no choice but to honor the International Monetary Fund’s (IMF) program to manage its $100 billion debt over the next three years.
Speaking at a seminar organized by the Pakistan Business Council, he said the federal government has little room for experimentation.
The statement follows the IMF’s Resident Representative Mahir Binici’s advice for Pakistan to stay the course with reforms. An IMF mission is scheduled to visit Islamabad next month for the first review under the $7 billion bailout program. The federal government’s progress remains slow since no state-owned enterprise has been successfully privatized and tax reforms in key sectors are still pending.
For FY25-FY27, Pakistan’s external debt repayments amount to $100 billion, excluding central bank liabilities and current account financing needs. For the ongoing fiscal year, the country owes $18.8 billion besides central bank liabilities.
Meanwhile, the Federal Board of Revenue (FBR) faces a growing revenue shortfall in the current fiscal year.
Also, Finance Minister Muhammad Aurangzeb has ruled out immediate relief for salaried taxpayers and said it would only be possible if other sectors contribute their fair share.
People don’t have jobs
Nothing is affordable
And you are worried about taxes .