Islamabad: The federal government recently reached out to the International Monetary Fund (IMF) to lower the tax collection target that had been set for the country, a news source reported. As per the publication, during the second review talks, the government informed the IMF that it could not collect more than PKR 4.7 trillion in taxes — however, the IMF kept stressing that the Federal Board of Revenue (FBR) should still aim for a collection of PKR 5.238 trillion.
The monetary authority further advised the government to immediately adopt additional revenue measures. On the other hand, as per a Ministry of Finance source, the request to lower the target comes following the country’s political instability and tough economic conditions affecting almost every household.
If the ongoing review talks remain successful, and the government’s mini-budget is approved aherad of the next IMF board meeting, then the international body may approve the third loan tranche in March. This loan would be worth USD 450 million.
According to the information available, the presentation of the mini-budget may become a prerequisite for calling the board meeting — given that both sides approve a new tax collection target for FBR. Reportedly, the authorities concerned were currently considering additional revenue measures worth PKR 200 billion.