Islamabad:
Pakistan had been committed to the International Monetary Fund (IMF) to acquire the climate fund and expected a support of $ 1-1.5 billion of the global lend, on Thursday said federal finance minister, Muhammad Aurengzeb, to the media .
Speaking informally with journalists after a ceremony in Islamabad, the minister revealed that an IMF mission would visit Pakistan on February 24 for discussions about the climate background, while another mission was expected next month for the semiannual review of the installation of extended funds in progress.
“The discussions will be carried out with the IMF on the climate background. The IMF mission is expected to provide $ 1-1.5 billion in the form of climatic financing,” said the minister. “A second Mission of the IMF will come to Pakistan in March for a six -month review,” he added.
The IMF’s climatic financing is carried out from its resistance and sustainability trust, which was created in 2022 to provide long -term concessional cash for weather -related spending, such as adaptation and transition to cleaner energy.
Pakistan made a formal request in October last year for about $ 1 billion in IMF funds under the trust, to address the vulnerability of the nation to climate change. According to an ad, the mission would visit from February 24 to 28 for a “review and discussion” of climate resilience financing.
Aurengzeb seemed optimistic about the current IMF program. “Everything related to the IMF program is fine,” he emphasized. He said the current account deficit for a month had become negative, but remained positive for seven months.
“The DNA of the economy will be fixed through structural reforms, without this, there is no hope of improving the economy,” he said, warning that the growth rate should carefully increase so that “the boom and bust cycle is not repeated” .
Meanwhile, speaking at a conference on ‘Red retrieved: innovate, collaborate and prosper’, organized by the Retail Business Council of Pakistan (PRBC), the minister expressed concern about the lack of contribution of the retail sector to the national treasure.
“The retail sector, which contributes significant 19% to GDP, is paying only 1% in taxes,” he said, added that the government had been involved with the retail sector, requesting them to formalize their businesses and pay their due time. Tax participation.
He warned that the disproportionate charge of taxes on the manufacturing industry, the service industry and the salaried class was unsustainable. “We need to bring other segments to the fiscal network,” he added. “For national interest, we can no longer allow people to take a free trip.”
He said that an important review of the tax system was being carried out, with the focus on the digitalization of end to end to promote transparency, reduce leaks and combat corruption. “It is optimized [faceless customs] The process has eliminated monetary culture, promoting a more efficient tax authority. “
He said there have been RS9.4 billion in cash, that it should be taken to the formal economy. He acknowledged that this could not be done during the night, however, the government was determined to move in the right direction.
In his speech, the minister stressed that the economy had taken a significant turn for better, with macroeconomic stability firmly in place as the stabilized currency, currency reserves increased and inflation receded and the policy rate decreased significantly, With Kibor, retreating 23 % to 11 %.
“These positive developments have not gone unnoticed, since foreign investors are realizing the economic potential of Pakistan. Institutional flows are returning to the country, and investments are incorporated into both debt and capital sides,” Aurengzeb said.
