IMF Demands Pakistan to Collect Rs. 430 Billion More Tax Revenue Next Fiscal Year

The International Monetary Fund (IMF) has demanded that Pakistan raise an additional Rs. 430 billion through more taxes to meet the new Rs. 14.3 trillion tax revenue target for the 2025–26 federal budget, official sources told ProPakistani. The proposal was put forward during the second round of virtual talks between the IMF and Pakistan’s economic team. The Fund stressed the need for urgent reforms to broaden the tax base, resolve long-pending tax cases, and, among other things The IMF advised that Rs. 600 billion could be generated solely through enforcement actions. It also called for the documentation of high-potential sectors such as tobacco, beverages, and real estate, and 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 suggest total tax revenue could be limited to Rs. 13.275 trillion. The IMF also reiterated its demand for timely resolution of court-stuck tax cases and maintaining primary balance targets under the ongoing Extended Fund Facility program.