ISLAMABAD: The International Monetary Fund (IMF) has called on Pakistan to enhance its professional engagement with foreign investors, emphasizing the need for a more transparent and uniform approach.

The call came following a meeting between the Pakistani economic team and IMF representatives, where key issues related to the country’s economic performance were discussed. In the recent talks, the Pakistani team and the IMF deliberated on several critical matters, including the revenue shortfall, the National Fiscal Pact, the circular debt burden in the energy sector, and reforms in Pakistan’s financial sector.

Other topics of discussion included the implementation of the Track and Trace system, tax schemes for retailers, and the reform of State-Owned Enterprises (SOEs). The IMF expressed concerns about Pakistan’s ongoing revenue shortfall, the National Fiscal Pact, and the rising circular debt in the energy sector. Pakistan, in turn, assured the IMF that it would meet the agreed fiscal targets and implement necessary reforms to address these challenges. One of the key recommendations from the IMF was the introduction of merit-based incentives for foreign investors, urging Pakistan to provide equal opportunities for all investors, regardless of their country of origin. Additionally, the IMF called for the removal of tax exemptions currently offered in Special Economic Zones (SEZs), emphasizing the need for a more consistent and transparent tax regime. Furthermore, the IMF advised Pakistan to offer uniform services and incentives to investors from all regions, including Gulf countries and European nations, to attract a broader range of international capital. As part of the ongoing discussions, the IMF delegation is scheduled to meet officials from the Special Economic Facilitation Council (SIFC) on November 15 to further explore these issues.