The Finance Division on Tuesday said Pakistan’s IMF program is being implemented through a coordinated effort involving multiple federal and provincial institutions, rejecting reports that suggested the Finance Ministry alone controls negotiations and policy decisions under the arrangement.
In a detailed statement, the ministry said the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) include commitments related to taxation, energy, planning, provincial finances, social protection and monetary policy, requiring the involvement of ministries, provincial governments, the Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP).
The clarification came in response to a media report that the ministry said presented an inaccurate picture of how the IMF program operates.
The Finance Division also rejected claims that the Petroleum Development Levy (PDL) is the centerpiece of the IMF program, saying fiscal reforms are based on a broader strategy that includes tax collection, expansion of the tax base, provincial revenue measures and expenditure management.
At the same time, the ministry acknowledged that fuel pricing forms part of the agreed framework with the IMF, including regular price adjustments in line with international markets and the introduction of a carbon levy through the PDL mechanism.
The ministry said inflation, unemployment and economic growth are influenced by a range of factors, including global commodity prices, exchange rates, monetary policy and external financing conditions, rather than a single tax measure.
It added that fiscal stabilization, reserve accumulation and lower refinancing risks are essential for supporting long-term investment and sustainable economic growth.
The Finance Division further said the IMF program includes social safeguards such as funding commitments for the Benazir Income Support Programme (BISP) and targeted support measures for vulnerable households.
It also noted that reforms such as agricultural income taxation fall under provincial governments, while the Finance Division’s role is to coordinate the overall program rather than implement all policy measures itself.
