WASHINGTON: Pakistan needs to mobilize 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 Pakistani Prime Minister Imran Khan.
The two officials discussed recent economic developments and implementation of Pakistan’s IMF-supported economic reforms, which are aimed at stabilizing the economy, strengthening institutions and paving the way for sustainable and balanced growth, David Lipton said in a statement.
Khan’s government faces mounting pressure as rising prices and tough austerity policies under Pakistan’s latest bailout from the IMF are squeezing the middle class that helped carry it to power.
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 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.
Khan, who arrived in Washington on Sunday, is due to meet with US President Donald Trump at the White House on Monday. Trump is likely to press Khan 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.
In recent years, import-led consumption has propped up growth in Pakistan and helped hide the problems of an economy riddled with inefficiency and without a strong export base.
But Khan’s government, like many of its predecessors, has been forced to turn to the IMF to prevent a balance-of-payments crisis.
Economic growth, which reached 5.5% in the fiscal year to June 2018, is expected to slow to 2.4% this financial year, according to IMF estimates, barely enough to keep pace with the growth in a population that now numbers 208 million.
IMF says Pakistan needs to mobilize tax revenue, cut debt
IMF says Pakistan needs to mobilize tax revenue, cut debt
- Pakistan signed $6 bn IMF loan program to prevent balance of payment crisis
- Acting director IMF met with PM Khan in Washington
Pakistan proposes mining cooperation pact with Australia
- Islamabad wants intergovernmental agreement to attract long-term Australian investment
- Government seeks to formalize gemstones sector to boost exports, jobs and value addition
ISLAMABAD: Pakistan proposed an intergovernmental agreement with Australia to support structured, long-term cooperation in the mining sector, as Islamabad looks to attract investment and develop its mineral resources, according to an official statement on Tuesday.
The issue came up for discussion during a meeting between Pakistan’s Petroleum Minister Ali Pervaiz Malik and the new Australian High Commissioner Timothy Kane. The meeting focused on exploring avenues for enhanced bilateral cooperation, particularly in the mining and gemstones sectors.
Pakistan has positioned mining as a potential engine of long-term growth, following years of underinvestment and stalled projects, and as resource-rich Asian economies increasingly look overseas to secure supplies of critical minerals and diversify investment portfolios.
“The Federal Minister welcomed the strong interest of Australian companies in Pakistan’s mining sector and highlighted the country’s immense untapped mineral potential, particularly in the Tethyan Belt,” the statement said.
“He proposed the possibility of an Intergovernmental Agreement (IGA) between Pakistan and Australia to promote structured and long term cooperation in the mining sector,” it added.
The minister also highlighted the government’s efforts to develop and formalize the gemstones sector, emphasizing its potential for value addition, exports, and employment generation.
The Australian high commissioner said companies from his country were already involved in Pakistan’s Reko Diq copper and gold project while pointing out that additional firms had expressed interest in investing in Pakistan’s mining sector.
He also informed that Australia was open to cooperation in the gemstones sector through technical assistance, training and knowledge-sharing, noting the growing strategic importance of minerals for the global energy transition.
