Pakistan is set to receive $1 billion in climate financing from the International Monetary Fund (IMF) next week, according to local media reports on Thursday.
Finance Minister Muhammad Aurangzeb, during a Senate committee briefing, revealed that an IMF mission focused on climate financing will be visiting Islamabad next week, as reported by Geo TV.
Pakistan, which is currently under a $7 billion IMF bailout program, continues to face economic difficulties. Aurangzeb stressed the need to integrate the undocumented economy into the tax system, emphasizing that the country cannot sustain individuals and entities avoiding taxes.
“We cannot keep seeking financial assistance repeatedly. The manufacturing sector, select service industries, and salaried individuals are carrying an unfair tax burden,” he stated. He pointed out that the formal sector is shouldering taxes while indirectly subsidizing tax evaders, which is not a viable long-term solution.
Additionally, Aurangzeb raised concerns about the resurgence of petroleum smuggling from Iran and called on the federal government to formalize an agreement with Iran to regulate the trade. He also criticized Musadik Malik for not addressing the concerns of petroleum dealers, arguing that deregulation would not necessarily lead to lower petrol prices for consumers.
