Islamabad, Nov 11:An International Monetary Fund (IMF) delegation has arrived in Pakistan to begin talks with the Federal Board of Revenue (FBR) officials regarding the nation’s fiscal performance.
The FBR chairman led the team in presenting tax collection and revenue data for the first quarter of the current fiscal year.
FBR officials revealed that tax revenue amounted to Rs2,625 billion between July and September, fulfilling 96.6% of the quarterly target. However, between July and October, there was a Rs190 billion shortfall in achieving the overall tax target.
The IMF delegation was informed that FBR raised an extra Rs8 billion in September, surpassing the target of Rs1,098 billion.
The officials also highlighted a 76% year-on-year rise in income tax returns, with over 5.2 million individuals filing returns, contributing over Rs132 billion in revenue.
Furthermore, the FBR met its Rs10 billion tax collection goal from retailers during the first quarter.
The IMF delegation is set to meet Finance Minister Muhammad Aurangzeb tomorrow to discuss fiscal policies and potential adjustments to address the revenue shortfall.
The briefing also included Minister of State for Finance Ali Pervaiz Malik and representatives from the State Bank.
The government is preparing a report on the country’s economic performance for the first quarter of the current fiscal year.
The IMF delegation will stay in Pakistan until November 15. The government is also making preparations for negotiations with the IMF, which may include aspects of a mini budget.
Throughout its visit, the IMF team will be updated on tax revenue performance, a trader-friendly scheme, and reforms in the energy sector.
Discussions will also cover the potential mini budget to meet the annual tax target.
The government will update the IMF delegation on the progress of implementing an agricultural income tax at the provincial level, although some provinces missed the October deadline for legislation.
The IMF delegation will also assess efforts to address the $2.5 billion financing gap, although the first review of the Extended Fund Facility (EFF) program, scheduled for March 2025, will not take place during this visit.
