Pakistan has successfully concluded discussions with the International Monetary Fund (IMF), solidifying an agreement to uphold the annual tax collection target at Rs 9,415 billion. This significant decision, a product of policy-level talks, marks a crucial step in Pakistan’s economic strategy.
The outcome of the discussions underscores the commitment of Pakistan’s tax authorities to achieve the annual tax target without resorting to a mini-budget. Notably, the emphasis during the talks was on the caretaker government’s assurance that no new taxes would be imposed. Instead, the focus will be on implementing administrative measures to strengthen tax revenue.
Sources from the Federal Board of Revenue (FBR) revealed a commitment to the IMF regarding plans to expand the tax net by promoting comprehensive documentation within the economy. This initiative aligns with the ambitious tax targets set by the IMF.
The FBR confirmed the submission of a detailed plan to the IMF, outlining the strategy to achieve the Rs 9,415 billion tax collection target. The plan emphasizes Pakistan’s dedication to meeting these goals while concurrently addressing tax evasion within the real estate sector.
Caretaker Finance Minister Dr. Shamshad Akhtar assured the public that there would be no additional tax burdens, reiterating the commitment to maintaining the tax target at Rs 9,415 billion. Dr. Akhtar emphasized the adoption of a policy of fiscal prudence in government spending, with the finance ministry committed to controlling the budget deficit by reducing expenses.
Expressing optimism about the ongoing discussions with the IMF, Dr. Shamshad Akhtar stated, “The IMF has demonstrated confidence in the actions of the caretaker government, particularly in supporting the program and development expenditure for the betterment of the country.”