Mustafa Nawaz Khokhar Questions Role of Government as IMF-Driven Tax Targets Spark Debate

Islamabad: Former senator Mustafa Nawaz Khokhar has raised concerns over the country’s economic direction, questioning the role of the government and its economic team if major budget decisions are being influenced by the International Monetary Fund (IMF).

In a statement posted on social media platform X, Khokhar said the IMF has reportedly set conditions for a 163 percent increase in tax targets for the upcoming budget, with an overall target of Rs17 trillion. He added that no segment of society—including businesses, salaried individuals, labourers, and farmers—can bear further tax burden.

He criticized the current government, stating that this would be its fifth budget and questioning its economic performance. He asked that if the IMF is effectively shaping the budget and Pakistan is merely approving it, then the need for the prime minister and his economic team should be reconsidered.

Khokhar further said that continued reliance on IMF programs has led to excessive taxation, which he believes is stalling economic growth. He argued that Pakistan’s already narrow tax base is under further strain and warned that additional taxes could push the economy into a “negative loop.”

He also described the current tax system as unfair to those already within the tax net, claiming it discourages broader participation. Khokhar suggested that Pakistan should reconsider its engagement with the IMF, reduce unnecessary expenditures, and focus on providing relief to the public by designing its own budget policies.