IMF and Capital Calling urge Pakistan for economic reforms

Pakistan is being encouraged by the International Monetary Fund (IMF) and local think tank Capital Calling to make the most of its current stability by adopting effective economic strategies. The IMF Deputy Managing Director stressed the importance of sound economic policies, while Capital Calling emphasized the need for strict implementation to ensure economic stability and boost tax revenue, especially through higher taxes on tobacco products.

Recently, the IMF Executive Board reiterated the significance of seizing the moment to implement strong macroeconomic policies and structural reforms for sustainable growth. Capital Calling also highlighted the importance of aligning cigarette taxes with global standards set by the World Health Organization, considering the adverse health effects of smoking on society.

Studies have shown that Pakistan has a significant number of active smokers, impacting both smokers and non-smokers. The country is a major player in the global cigarette production industry, contributing to high smoking rates worldwide.

The reluctance of the government to revise tobacco tax policies is attributed to a lack of understanding of the health and social costs associated with smoking. Capital Calling urged policymakers to consider these costs when setting tax rates to preserve Pakistan's stability.

It is crucial for Pakistan to heed the advice of international organizations and local experts to implement effective economic policies and tax reforms. By aligning with global standards and considering the health implications of tobacco use, Pakistan can safeguard its stability and promote the well-being of its citizens.