IMF Urges Pakistan to Sustain Reforms and Broaden Tax Base Under $7bn Bailout

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The International Monetary Fund (IMF) has emphasized the importance of sustained implementation of Pakistan’s $7 billion Extended Fund Facility (EFF) and broadening the tax base for long-term economic stability. Following the IMF’s disbursement of a $1 billion tranche, the board stressed that Pakistan must continue reforms, particularly in tax administration, fiscal management, and the energy sector.

The IMF urged Pakistan to move away from a state-led growth model, calling for more competition, private investment, and governance reforms. The program aims to enhance the country’s resilience, promote inclusive growth, and strengthen macroeconomic stability. Key priorities include reforming state-owned enterprises (SOEs), improving the business environment, and addressing Pakistan’s longstanding structural challenges.

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