ISLAMABAD: The Federal Board of Revenue (FBR) has assured the International Monetary Fund (IMF) that the tax shortfall of Rs605 billion will be addressed without the need for a mini-budget, as economic review talks between Pakistan and the IMF continue.
According to officials, a plan has been presented to the IMF, under which the shortfall will be met through the settlement of pending tax cases.
The IMF has been informed that the revenue target is expected to be achieved by June; otherwise, expenditure cuts will be made to compensate for any remaining deficit.
The FBR is hopeful of securing Rs 157 billion through the Supreme Court’s upcoming decision on super tax. The apex court is set to hold a crucial hearing on the matter on March 10, with Rs 57 billion expected from the Supreme Court ruling and the remaining Rs 100 billion from the High Court’s verdict.
In addition, the FBR has collected Rs 23 billion under the windfall profit tax imposed through Section 99D and Rs 72 billion from the advance deposit ratio in banks.
Efforts to expedite tax case resolutions
To further bridge the revenue gap, work is underway on an alternative system to resolve pending tax disputes. According to sources, the government is expediting court proceedings to clear long-standing tax cases.
The prime minister has assured full cooperation in facilitating early resolutions, while Chief Justice of Pakistan has also approved an expedited hearing process for these cases.
Talks with IMF continue
Wednesday marked the third consecutive day of discussions between Pakistani officials and the IMF. Key topics included the performance of the energy sector, progress on social and economic surveys conducted by the Pakistan Bureau of Statistics, budgetary figures, and external financing requirements.
The outcome of these negotiations will be critical in determining Pakistan’s ability to meet its fiscal targets and secure the next tranche of funding under the IMF programme.
