'Pakistan needs to mobilise tax revenue, cut debt': IMF acting director after meeting PM

Reuters Dawn.com Published July 22, 2019

Prime Minister Imran Khan met with the acting director of the IMF David Lipton on Sunday. — Photo courtesy David Lipton Twitter

Pakistan needs to mobilise domestic tax revenue to ensure funds for social and development programs, while reducing debt, the acting director of the International Monetary Fund said on Sunday after a meeting with Prime Minister Imran Khan in Washington DC.

The two officials discussed recent economic developments and the implementation of Pakistan's IMF-supported economic reforms, which are aimed at stabilising the economy, strengthening institutions and paving the way for sustainable and balanced growth, David Lipton said in a statement.

Lipton said the IMF and other international partners were working closely with the Pakistani government to support implementation of the reforms.

"I highlighted the need to mobilise domestic tax revenue now and on into the future to provide reliably for needed social and development spending, while placing debt on a firm downward trend," Lipton said in a statement after the meeting.

The premier also met with the World Bank President David Malpass.

In a post shared on Twitter, Malpass said that they discussed PM Imran's "important ideas on transformational policies to accelerate equitable growth and job creation for Pakistanis".

Prime Minister Imran, who arrived in Washington on Sunday, is due to meet with US President Donald Trump at the White House on Monday (today). Trump is likely to press Prime Minister Imran for help on ending the war in Afghanistan and fighting militants.

Last year, Trump cut off hundreds of millions of dollars in security assistance to Pakistan, accusing Islamabad of offering "nothing but lies and deceit" while giving safe haven to terrorists, a charge angrily rejected by Islamabad.

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Taher

Jul 22, 2019 10:44am

Pakistan is being served to IMF and China by our successive governments.

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Jul 22, 2019 11:02am

Niazi himself pay few lakh rupees tax and asking people for tax while he live in banigala palace

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SkyHawk

Jul 22, 2019 11:55am

David Lipton is right. Its time to mobilise domestic tax revenue now.

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rohete

Jul 22, 2019 12:13pm

Change takes time, slowly people are realizing the importance of Taxes. Good going PM.

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AKB

Jul 22, 2019 12:25pm

Having broken the back bones of poor people what else the director IMF wants from Pakistanis?

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Adeel

Jul 22, 2019 12:58pm

"important ideas on transformational policies to accelerate equitable growth and job creation for Pakistanis". So its MF whom actually pushing government to do welfare for general public while government is busy in welfare for their employees only, that's not what IK promised, where is equality for us whom worked in private sector, why do we beg for health card while they got medical allowance and got no job security while those in government they have job security, confirm pensions, house / rent allowance, utility, even executive allowance.

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ExMohajirInUK

Jul 22, 2019 01:28pm

Great, Imran should start this drive from the top, first pay his due and then implement strict measures on all his ministers, feudal lords, establishment and then the common people. If there is no political will, these measures are doomed to fail as we have seen in past decades.

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Lone star

Jul 22, 2019 01:48pm

Cut useless defense expenses.

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Sohail

Jul 22, 2019 02:32pm

@Ts, tax is paid on assets and income... if he is paying few lacs rupees tax i guess thats more than sufficient...

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Sohail

Jul 22, 2019 02:34pm

Every TDH knows we have to broaden tax base... inclusive of every citizen... Irony is that same government is being attacked by media when it asks buisness community to file their tax returns... No one wants to change but wants their country to change

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HisMaster'sVoice

Jul 22, 2019 02:58pm

I wonder if IMF director asked PM khan regarding his statement of committing suicide before going to IMF. Would make for some light discussion before going into details of how to derail our economy and increase poverty like they are doing together under banner of 'pay more taxes'. Meanwhile sugar billionaires minting and enjoying PTI rule like never before.

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Raisin

Jul 22, 2019 03:08pm

@Ts, Don’t you know that Wealth Statement also gets filed which must include all property? Also buying a land for residence in a cheap area and later it becoming expensive isn’t PM’s fault. It’s called population growth, area development, and luck.

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Carlito Brigante

Jul 22, 2019 04:56pm

@Ts, Oh dear enjoy your work on behalf of PMLN. The leaders will be in prison soon and then NAB can investigate the workers.

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Shah

Jul 22, 2019 05:19pm

@Ts, People like you think they can demonize or lower his stature by calling him Niazi. Typical N-league mentality. Maybe you are one of those whose pocket is feeling his anti-corruption drive?

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Enlightened One

Jul 22, 2019 06:12pm

Punish the top 3 families in Pakistan for corruption - Sharifs, Zardaris, and Malik Riazs'. Done. Suddenly all the tax revenues you want will flow into the government coffers. You will have to build more vaults to store the money. It is that simple. PMIK has the will and the determination to do good for his country.

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Amjad Durrani Engineer USA

Jul 22, 2019 07:28pm

The sword of Damocles hanging as IMF conditionalities is coming into action. This meeting happening just after 3 weeks of operability of IMF loan shows anxiety of the lender towards strict monitoring regime put in place. One can expect the Omni present demands of the lender to “Do More” in coming days forcing our economic managers to remain on their toes all this time for the next 39 months during the life of the stringent IMF loan package.

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TBH

Jul 22, 2019 07:35pm

Creditors will remote control debtors. Same happening here

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B r chawla

Jul 22, 2019 08:01pm

The only solution is to mobilise more taxes from the rich who can afford. Next is to cut defence spending by buying genuine peace with the neighbours by reigning or even culling the home grown terrorist hounds so fondly reared in the past. Either you love these hound or love your countrymen

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yes it would

Jul 22, 2019 09:01pm

@Raisin , "Also buying a land for residence in a cheap area and later it becoming expensive isn’t PM’s fault. It’s called population growth, area development, and luck." Fair but do you think that a man who pays a tax of PKR 1 lakh per annum can afford the maintenance and upkeep of a large estate like Banigala?

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yes it would

Jul 22, 2019 09:04pm

@Sohail, " tax is paid on assets and income... if he is paying few lacs rupees tax i guess thats more than sufficient..." HE had paid PKR a lakh as income tax. Do you think that shows sufficient income to manage upkeep and maintenance of a large estate like Banigala?

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Gordon D. Walker

Jul 22, 2019 11:20pm

The I M F is correct. But how to change the course of a ship caught up in an economic gale, one that has a badly broken compass... All hands on deck! Gordon D. Walker Canada

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A. Mangal

Jul 23, 2019 05:21am

@yes it would, Nope, the looted money held overseas will definitely be hard currency going to help a lot must you know!

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Mansur Ul Haque

Jul 23, 2019 07:00am

To improve tax revenue and cut down expenditures to pay loan is need of the hour. There is no other alternate except to get out of debt trap. This is not IMF agenda. This is requirement for our survival.

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Pure Sensible Dude

Jul 23, 2019 11:15am

Due to PML and PPP they have ruined the country and the cronies don't want to accept it. If it was not the truth, explain what has happened to the money, explain why some people are leaving Pakistan disguised as Asylum seekers. It is all due to PPP and PML corruption, mismanagement and family politics based on the mutual admiration society. Long live Imran Khan and his team who are trying to pull Pakistan out of a big mess. The Sharifs, Zardaris once investigations are complete should have their money, alledgely looted, confiscated, jailed for life and banned from Politics.

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