Finance Minister Ishaq Dar responded to concerns raised by the International Monetary Fund (IMF) regarding the government’s failure to expand the tax base in the 2023-24 budget. He emphasized that Pakistan, as a sovereign nation, cannot comply with all of the lender’s demands.
Speaking at the Senate Standing Committee on Finance and Revenue, the finance minister addressed the IMF’s objection to the tax exemptions included in the recently presented budget. Dar stated that Pakistan should have the right to provide some tax concessions as a sovereign country. He highlighted that the IMF wants Pakistan to refrain from granting tax concessions in any sector.
The finance minister assured the senators that the government understands the importance of tax collection and the various sources from which revenue can be generated. He explained that this understanding led to the government’s decision to increase the tax target from Rs7.2 trillion to Rs9.2 trillion in the upcoming budget.
