On 25 March 2016 the IMF issued a press release in connection with the tenth review under the Extended Fund Facility for Pakistan.
The IMF notes that economic activity has continued to gain strength. Further progress is required on structural reforms to generate strong growth and make the economy more resilient. The current fiscal vulnerabilities could be addressed by widening the tax net and making the tax system fairer, thereby generating the resources needed for necessary government spending.
Recent amendments to legislation on money laundering are in the opinion of the IMF a first step to widening the application of the anti-money laundering tools to include the proceeds of tax crimes. The IMF considers that further efforts to strengthen the anti-money laundering/ combating the financing of terrorism (AML/CFT) framework will help to strengthen financial stability and tax compliance.
In addition to this further improvements to the business climate, transparency and governance should also contribute to more inclusive economic growth.
