KARACHI: Pakistan’s business policy advocacy group urged the government to rationalize corporate tax rates during talks with an International Monetary Fund (IMF) delegation on Saturday, arguing such a step would be critical to shifting the economy from stabilization to export-led growth.
The Pakistan Business Council (PBC), which represents many of the country’s largest private-sector companies, said the current tax structure places a disproportionate burden on documented and compliant enterprises.
The engagement follows the arrival of an IMF staff mission in Pakistan earlier this week to begin review talks that will determine the release of the next tranche under the country’s $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF).
The team is expected to start formal negotiations next week, discussions seen as critical to sustaining Pakistan’s fragile economic recovery and maintaining external financing stability.
“Stabilization has provided breathing space,” PBC Chairperson Dr. Zeelaf Munir said according to a statement after the meeting with the IMF delegation headed by mission chief Iva Petrova. “The priority now is institutionalizing growth.”
