Important development with IMF over imposing new taxes in Pakistan: report
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The scheduled discussions for the release of the second installment of the International Monetary Fund (IMF) bailout package are anticipated to take place during the final week of October. In an online gathering between officials from the Federal Board of Revenue (FBR) and the IMF, Pakistan firmly asserted its stance against imposing any new taxes, reassuring the global lender that it aims to achieve its tax recovery targets without resorting to additional taxation measures.
According to insider sources, the IMF has expressed contentment with the performance of the FBR, and a comprehensive report on the economic performance of the nation for the initial week of October will be shared with the IMF.
Furthermore, sources indicate that taxation data for the first quarter of the current fiscal year, spanning from July to September, is poised to be presented to the IMF in the upcoming week. In an effort to combat tax evasion, Pakistan has also divulged its strategy for cracking down on tax theft to the IMF.
Of noteworthy importance is the revelation that due to mounting pressure from the IMF, the development budget is expected to face a reduction ranging between Rs 150 to Rs 200 billion.
This development came to light during a meeting between the Federal Minister of Finance, Dr. Shamshad Akhtar, and provincial finance ministers, highlighting the challenges Pakistan faces in meeting the terms and conditions associated with the IMF bailout.
