ISLAMABAD: Pakistan and the International Monetary Fund (IMF) began their second review talks on the ongoing loan program, with discussions centering on revenue shortfalls, pending tax litigation, and fiscal reforms.
According to Federal Board of Revenue (FBR) sources, the IMF was briefed on the reasons behind missed tax collection targets.
The Fund urged Pakistani authorities to expedite court cases involving the FBR, particularly super tax disputes. Officials said the FBR remains hopeful of recovering nearly Rs200 billion if decisions are made in its favor.
The government delegation informed the IMF mission that floods had caused estimated tax losses of around Rs60 billion.
The FBR also requested leniency in revenue targets, though the IMF has yet to give a final response and instead pressed for measures to broaden the tax net.
Sources revealed that the enforcement plan to cover the revenue shortfall includes decisions on super tax cases.
However, if court rulings go against the FBR, alternative measures will be required to secure Rs200 billion.
Discussions also covered the new NFC Award, with a briefing given on revenue-sharing formulas.
Proposals include reducing the provincial share of resources, currently at 82 per cent based on population, to create fiscal space.
The IMF delegation was further briefed on last year’s fiscal targets at a meeting of the Fiscal Development Committee. Today’s round of talks is expected to focus on the power sector and other key ministries.
Officials from the Finance Ministry expressed optimism, saying they remain hopeful about the success of ongoing negotiations with the IMF.
