'Pakistan made policy mistakes'

While claiming that Pakistan made policy mistakes, IMF Resident Representative in Pakistan Esther Perez on Thursday said strong policies are necessary for the successful implementation of the new loan programme.

Speaking at an event organized by SDPI, Perez said the IMF new programme aims to expand the tax base, bringing the agricultural sector into the tax net.

Under the new programme, government control over setting the support prices for food commodities will be eliminated, while tax revenue from the retail and real estate sectors will be increased, she said.

The IMF representative emphasized the need to create a better and more effective tax system while protecting the social sector.

"The new IMF programme is designed to promote growth led by the private sector. Reducing energy prices through structural reforms is also part of the programme."

Perez noted that despite stability in recent years, Pakistan still faces structural challenges. Every programme aims to improve policies, and strong policies are essential for the successful implementation of the new loan programme.

She said energy sector and industrial policies should support the local market, but when certain groups receive special treatment, it leads to distortions.

In response to a question, the IMF representative said they have tried to assist Pakistan in every way possible. "We remain neutral in politics; our focus is solely on policies and the economy," she said.

Perez said the tax system is crucial for any country. "We are not questioning or reversing the NFC Award, but we are highlighting that it is an important factor that has not been fully implemented," she added.