Dr. Aftab Madni advocates IMF tax reforms in Pakistan

Dr. Aftab Madni, the dean of Indus University, emphasized the importance of implementing IMF recommendations for tax reforms in Pakistan. He highlighted the need for a uniform tax on cigarettes, regardless of their brand, as suggested by the IMF. This measure is expected to generate significant revenue for the country, considering that about 9 percent of Pakistanis are smokers. Dr. Madni stressed that increasing the price of cigarettes is crucial, as the tobacco industry has been causing substantial financial losses to the national exchequer.

Hassan Shehzad, a researcher at the International Islamic University Islamabad, was commended for his report referenced by the IMF in its tax reform recommendations. The report established a clear link between cigarette consumption and affordability. Dr. Shehzad pointed out that the current $3 billion IMF arrangement with Pakistan is set to expire soon, and the government is seeking a larger loan for sustained macroeconomic stability and structural reforms.

In conclusion, the experts underscored the urgency of imposing a uniform tax on tobacco products to mitigate financial losses and promote public health. The government's commitment to implementing IMF recommendations for tax reforms is seen as a crucial step towards economic stability and long-term growth.