IMF makes important demand from Pakistan Government
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In Islamabad, the International Monetary Fund (IMF) has put forth a demand for Pakistan to present a tax collection plan amounting to Rs 6,670 billion by June 2024. This request was made, as reported by ARY News, on Saturday.
An IMF review mission arrived in Pakistan on Wednesday night to evaluate the country's economic performance for the first three months of the current fiscal year, spanning from July to September.
The IMF has stipulated that the tax collection report should encompass all sectors as part of its projection report. Negotiations for the next installment, a $700 million tranche, began on Thursday. Sources indicate that the IMF team emphasized the need for the Federal Board of Revenue (FBR) to meet its revenue targets without falling short.
The IMF team has also summoned a report from the FBR, to be delivered on Monday, concerning the progress of tax cases pending in courts. The FBR has shared information about one million new taxpayers added to the tax net with the IMF team, which, in turn, has requested a breakdown of tax revenues collected from each sector. In discussions, taxation officials explored the possibility of increasing the number of taxpayers from 4.9 million to 10 million.
The IMF has remained firm on its revenue collection targets and has encouraged revenue generation through the expansion of the taxpayer base. The FBR is expected to submit its report on this matter on Monday.
The IMF review mission is being led by Nathan Porter, the IMF's country chief. Sources from the finance ministry had previously noted that Pakistan had fulfilled all the conditions set by the IMF for the review talks within the context of the $3 billion standby arrangement (SBA).
