Pakistan is facing a major challenge meeting the tax collection targets outlined in the IMF agreement as there is a shortfall of a jaw-dropping PKR 604 billion in the current fiscal year, noted the Federal Board of Revenue (FBR). With the IMF review mission due to arrive in Islamabad on March 3rd 2025, it is essential for the government to either bridge the gap or seek a revision of targets.
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The FBR has collected PKR 7,343 billion against the PKR 7,947 billion target which is likely to exceed the PKR 1,000 billion shortfall by June 2025. In order to meet the agreed target of PKR 9,168 billion by March 31st the FBR must collect PKR 1,825 billion in March this month itself. Which is an uphill task given the preceding month of Ramadan and public holidays.
During negotiations with the IMF for a portion of the $1 billion under the $7 billion Extended Fund Facility (EFF) plus an additional $1 billion under the RSF especially under the light of the fiscal policies and revenue strategies are likely to be critiqued.
