IMF Urges Faster Resolution of Tax Disputes as Pakistan Pushes for Relief
ISLAMABAD – Pakistan has briefed the International Monetary Fund (IMF) on why it missed recent tax collection targets, with officials highlighting flood-related losses and ongoing court cases that have stalled revenue recovery.
According to Federal Board of Revenue (FBR) sources, the IMF pressed authorities to accelerate pending cases, particularly disputes over the super tax. Officials said the FBR is optimistic it could recover nearly Rs200 billion if rulings go in its favor. However, if the courts decide otherwise, the government will need to find alternative ways to secure the shortfall.
The Pakistani delegation informed the IMF mission that devastating floods had caused an estimated Rs60 billion in tax losses. The FBR also sought leniency on revenue targets, but the Fund has not yet agreed and instead urged steps to broaden the tax base.
Talks also touched on the upcoming National Finance Commission (NFC) Award. Proposals under discussion include changes to the revenue-sharing formula, which currently allocates 82 percent of resources to provinces based on population, to free up fiscal space for the federal government.
The IMF delegation was additionally briefed on last year’s fiscal performance during a meeting of the Fiscal Development Committee. Today’s sessions are expected to focus on the power sector and other key ministries.
Despite the tough negotiations, Finance Ministry officials expressed confidence, saying they remain hopeful about a positive outcome in ongoing talks with the IMF.
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