Islamabad:

Pakistan had been engaged to the International Monetary Fund (IMF) to acquire the Climate Fund and expected $ 1-1.5 billion support from the global lender, federal Finance Minister Muhammad Aurangzeb told the media persons on Thursday.

When he spoke informally with journalists after a ceremony in Islamabad, the minister revealed that an IMF mission would visit Pakistan on February 24 for discussions about the Climate Foundation, while another mission was expected next month for the half-year review of the ongoing extended fund facility.

“Discussions will be held with the IMF about the Climate Fund. The IMF mission is expected to give $ 1-1.5 billion in the form of climate financing,” the minister said. “Another IMF mission is coming to Pakistan in March for a six-month review,” he added.

The IMF’s climate financing takes place from its resilience and sustainability, which was established in 2022 to provide long -term concessions with cash -related expenses, such as adaptation and transition to cleaner energy.

Pakistan made a formal request in October last year about about $ 1 billion in funding from the IMF during the Trust to tackle the nation’s vulnerability to climate change. According to a message, the mission would visit from February 24 to February 28 for a “review and discussion” of climate insurance financing.

Aurangzeb seemed optimistic about the ongoing IMF program. “Everything related to the IMF program is fine,” he emphasized. He said the deficit for running account for a month had become negative but remained positive for seven months period.

“The DNA of the economy will be determined through structural reforms, without this, there is no hope of improving the economy,” he said, warning that the growth rate must be carefully increased so that the “bust and bust cycle does not repeat itself”.

Meanwhile, talking at a conference on ‘Retail Reimagined: Innovate, Collaborate and Thrive’, organized by Pakistan Retail Business Council (PRBC), the minister expressed concern about the retail sector’s lack of contribution to National Exchequer.

“Retail, which contributes a significant 19% to GDP, pays only 1% in taxes,” he said, adding that the government had been engaged in the retail sector and asked them to formalize their businesses and pay their due share of taxes.

He warned that the disproportionate burden of taxes on manufacturing, service industry and grade was unsustainable. “We have to bring other segments into the tax network,” he added. “For national interest, we can’t afford to get people to take a free trip more.”

He said a major overhaul of the tax system was in the process of focusing on end-to-end digitization to promote transparency, reduce leakage and fight corruption. “This streamlined [faceless customs] The process has removed the money culture and created a more efficient tax authority. “

He said there has been RS9.4 trillion in cash circulation to be brought into the formal economy. He acknowledged that this could not be done overnight, but the government was determined to move in the right direction.

In his speech, the Minister emphasized that the economy had taken a significant turn for the better, with the macroeconomic stability, %.

“These positive developments have not gone unnoticed as foreign investors again notice Pakistan’s financial potential. Institutional flows return to the country, with investments that pour into both debt and equity,” Aurangzeb said.