The acting director of the International Monetary Fund (IMF), after a meeting with Pakistani Minister Imran Khan, stated on Sunday that Pakistan needs to mobilize domestic tax revenue to make sure funds for social and development programs while decreasing debt.
David Lipton said in a statement that the two officers discussed recent economic developments and implementation of Pakistan’s IMF-supported economic forums which aims to stabilize the economy and strengthen institutions and pave the way for sustainable and balanced growth.
Mr. Khan’s government faces increasing pressure as because of rising prices and tough austerity policies under Pakistani’s latest bailout from the IMF are pressing the middle class that helped carry it to power. To successfully implement the action, the IMF and other international partners were working unitedly with the Pakistan government, said Lipton.
“I highlighted the need to mobilize 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.
Meanwhile, Mr. Khan has already arrived in Washington on Sunday and will have a meeting with U.S President Donald Trump at the White House on Monday. Trump is supposed to press Khan for help in ending the war in Afghanistan and fighting militants.
Last year, the US President took a strict step against Pakistan, reducing hundreds of millions of dollars in security assistance to Pakistan, accusing of giving safe haven to terrorists. However, the charge was totally rejected by Islamabad. According to IMF estimates, the economic growth is likely to decrease to 2.4 % which reached 5.5% in the fiscal year to June 2018.