Prime Minister Shehbaz Sharif has reaffirmed that because the nation was participating in an International Monetary Fund program, the government was forced to maintain a high tax rate.
Speaking at the Movenpick Hotel’s launch in Islamabad on Monday, he stated, “If circumstances permit, I would lower the tax rate by 15%, but I am constrained by the requirements of the IMF.”
A fresh $7 billion, 37-month loan deal for Pakistan was agreed by the IMF’s Executive Board in September; it calls for “sound policies and reforms” to improve macroeconomic stability. With the approval, Islamabad received an instant $1 billion payout.
The crisis-plagued Since 1958, 22 IMF bailout programs have been implemented in South Asian countries.
