In a short note shared with Dawn late on Monday night, IMF Resident Representative to Pakistan Teresa Daban Sanchez said that raising revenues is the heart of the adjustment effort that the government needs to undertake. “There is an immediate need to stabilise the economy,” she said, adding that “revenue collection is essential to this.”

Regarding the mini-budget she said “our understanding is that the forthcoming mini-budget will be focused on revenues.” She underscored the importance of spreading the burden of the revenue effort, saying “the base should be expanded through tax policy, administrative actions and enforcement”.

She also underscored the dangers of rising levels of public debt, and pointed out that it is linked with the revenue effort. “There is a need to pay attention to debt sustainability over the medium- term, and this matter has a direct link with the fiscal deficit.”

Published in Dawn, January 22nd, 2019