ISLAMABAD: The International Monetary Fund (IMF) reiterated its appreciation for Pakistan’s policies that restored economic stability over the past year in its latest statement on Friday, while emphasizing the need to increase revenue by broadening the tax net.
The IMF approved a 37-month, $7 billion loan program for Pakistan this week, recognizing the government’s commitment to implementing the stringent economic reforms it had recommended.
The government has already announced plans to improve its tax-to-GDP ratio and is reforming the revenue generation system by incorporating more integrated, automated technology to enhance efficiency and compliance.
“The implementation of sound policies over the past year has been critical to restore economic stability, reduce near-term risks and rebuild confidence,” IMF Deputy Managing Director Kenji Okamura said while highlighting continued structural challenges that require government’s attention.
He emphasized continued fiscal consolidation in the ongoing financial year and beyond through enhanced revenue mobilization.
“Increasing revenue mobilization by broadening the tax base, removing special sectoral regimes, and placing a fairer burden on previously undertaxed sectors (including industrialists, developers, and large-scale agriculture), will enhance fairness and efficiency and create needed space for essential investments in human capital, infrastructure, and social spending,” he added.
The IMF statement also highlighted “insufficient” spending on health and education, saying it had made it difficult to address “persistent poverty” in the country.
Federal Minister for Finance and Revenue Muhammad Aurangzeb said this week the government wanted to eliminate the “non-filer” category by taking punitive actions against those who previously paid nominal amounts on various transactions to avoid filing tax returns.
He pointed out that measures were being taken to improve tax compliance and enforcement, which had previously remained weak.
The minister also said the government aimed to widen the tax net by incorporating the agriculture, retail and wholesale sectors, saying its “hand has been forced.”
IMF emphasizes broadening tax base while praising Pakistan’s commitment to economic reforms
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IMF emphasizes broadening tax base while praising Pakistan’s commitment to economic reforms
- A top lending agency official asks government to place ‘fairer burden on previously undertaxed sectors’
- IMF highlighted ‘insufficient’ health and education spending, says it makes it difficult to address poverty
Pak-Qatar becomes Pakistan’s first dedicated family takaful operator to list on PSX
- Pak-Qatar Family Takaful Limited’s initial public offering raises $3.2 million, says company
- Company says remains committed to strengthening Pakistan’s Islamic financial eco-system
KARACHI: The Pak-Qatar Family Takaful Limited (PQFTL) became the first dedicated family Takaful operator to be listed on the Pakistan Stock Exchange (PSX), the company announced on Thursday, saying the development would strengthen the ecosystem for Islamic financial products and services in the stock market.
PQFTL is the country’s first and largest dedicated shariah-compliant family risk-protection provider, holding 44 percent of the total family takaful market and more than 90 percent of the fully dedicated segment, with a nationwide presence of 73 branches and 1,971 field representatives.
The company announced in a statement last month it would offer 50 million shares, starting at a floor price of Rs14 per share ($0.05), with a ceiling of Rs21 per share ($0.07). Of the total issue, 37.5 million shares will be allocated to institutional investors, while 12.5 million shares will be offered to the general public.
In its latest statement, the PQTFL said the book building and public subscription portions of its Initial Public Offering (IPO) were oversubscribed by 3.2 times and 3.8 times, respectively, reflecting strong investor confidence in the company and Pakistan’s Islamic financial ecosystem.
“The IPO raised Rs901 million [$3.2 million], achieving a 29 percent premium, reflecting strong investor interest and positive market perception,” the statement said.
“This historic milestone and response from investors underscore PQFTL’s exceptional financial resilience, strategic foresight, and unwavering commitment to Shariah-compliant excellence,” it added.
The company said over 8,200 investors participated in the IPO, making it one of the highest investor turnouts in Pakistan’s insurance and Takaful sector.
“The offering attracted a diverse mix of institutional investors, insurance companies, family offices, corporate investors, and a significant number of individual investors,” it said.
Muhammad Kamran Saleem, a member of the board of directors of the PQFTL, said the company’s listing on the stock exchange was a “historic achievement.”
“The overwhelming response from investors demonstrates deep trust in our business fundamentals, Shariah governance standards and strategic vision,” he said.
“We are grateful to Allah Almighty for this historic achievement and we remain committed to strengthening the Islamic financial eco-system and long-term sustainable value creation to all our stakeholders.”
PQFTL said the IPO proceeds will help it in meeting regulatory capital requirements, expand digital distribution channels, enhance product innovation and drive customer-centric growth initiatives.
