In late October, discussions between Pakistan, grappling with a crisis, andthe International Monetary Fund (IMF) will resume.
These talks aim to pave the way for the release of the next installment offunds from a $3 billion lending program, which is intended to help Pakistannavigate its crisis and prevent default.
During an online meeting with the IMF, the Federal Board of Revenue (FBR)expressed confidence in achieving its tax recovery targets without the needfor additional taxes.
The IMF has expressed satisfaction with Pakistan’s tax collectionperformance and will be briefed on the country’s economic performance inthe upcoming meeting. In this meeting, officials will provide updates ontax revenues for the first quarter of the current fiscal year and shareinformation about the ongoing crackdown against tax evasion and hoarding.
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Additionally, Pakistan plans to reduce its development budget by up toRs200 billion, responding to pressure from the IMF. Finance MinisterShamshad Akhtar has discussed the future course of action with provincialfinance ministers.
In July of this year, Pakistan received the first tranche of $1.2 billionfrom the IMF as part of the $3 billion bailout package. The country alsosecured financial support of $1 billion from the UAE and $2 billion fromSaudi Arabia to avert default.
