Islamabad, 17 May, 2025: The International Monetary Fund (IMF) has pressed Pakistan to raise an extra Rs. 430 billion in taxes to achieve a total tax revenue target of Rs. 14.3 trillion for the financial year 2025–26, according to officials.
This request was made during the second round of virtual meetings between IMF officials and Pakistan’s economic team.
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The IMF highlighted the need for immediate steps to expand the tax base, resolve long-pending tax disputes, and implement reforms to strengthen the country’s revenue system.
According to the IMF’s suggestions, about Rs. 600 billion can be recovered through stricter enforcement efforts.
The Fund also recommended bringing key sectors like real estate, tobacco, and soft drinks into formal documentation.
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Alongside this, it urged improvements in the Federal Board of Revenue’s (FBR) data collection, automation, and real-time monitoring systems.
Finance Minister Muhammad Aurangzeb briefed the IMF on the country’s economic outlook and revenue challenges amid low growth and persistent inflation. Government estimates currently put the likely revenue collection at around Rs. 13.275 trillion.
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In addition, the IMF called for quick decisions on tax cases that have been stuck in courts and urged the government to maintain the agreed budgetary targets under the existing loan program.
