The Resident Chief of the International Monetary Fund (IMF) in Pakistan, Mahir Binici, has highlighted Pakistan’s ongoing economic challenges, pointing to the country's insufficient tax revenue generation.

Binici noted that this issue places an excessive tax burden on the formal sector while allowing certain sectors to contribute minimally to the national exchequer, thereby increasing pressure on compliant taxpayers.

These remarks were made during a conference organized by the Pakistan Retail Business Council (PRBC).

During the same event, Finance Minister Muhammad Aurangzeb pointed out that the retail sector, which accounts for 19 percent of GDP, contributes only 1 percent in taxes. He emphasized the need for sectors such as agriculture, retail, wholesale, and real estate to share a fair portion of the tax burden. The current tax system, he argued, is unsustainable, and the government plans to take strict measures against informal and undocumented businesses to improve tax collection.

Additionally, Aurangzeb announced that an IMF mission would visit Pakistan on February 24 to discuss the release of $1-1.5 billion in climate financing.