ISLAMABAD: International Monetary Fund (IMF) has been pressing Pakistan to expand tax base and increase revenue generation which is again one of main conditions set under $ 3 billion stand-by arrangement after country received $ 1.2 billion in first tranche last week.

In this connection, reports suggest that IMF has listed real estate and agricultural sectors for having huge potential and sought plan from government on this subject. Meeting IMF conditions is priority for Pakistan as remaining amount of $ 1.8 would only be released only after two reviews, meaning that there are going to more tranches. However, decision would be taken by either by caretaker setup or by new government elected by after upcoming general elections. Increasing energy prices, interest rates and tax collection remains IMF's focus as its Managing Director Kristalina Georgieva had stressed soon after top lender approved deal that Pakistan would have to accelerate structural reforms.

At the same time, she called for reducing state expenditure and bringing changes in energy sector through steps like increase in tariff while modifying subsidy structure.

"Maintaining discipline over non-critical primary expenditure will be essential to support budget execution within envisaged envelope. In parallel, authorities urgently need to strengthen energy sector viability by aligning tariffs with costs, reforming sectors cost base and better-targeting power subsidies."