Pakistan, May 28 -- The International Monetary Fund (IMF) has asked Pakistan to take strict steps against tax evaders. It wants the government to increase its revenue through better tax enforcement and policy reforms. According to sources, the IMF shared several suggestions to control tax evasion and bring more transparency into the tax system. These proposals are expected to shape the upcoming federal budget for 2025-26, which will be presented on June 2.

One of the key suggestions is to raise the penalty for tax fraud through Point-of-Sale (POS) systems. The current fine of Rs 500,000 could go up to Rs 5 million. The IMF also proposed criminal action against serious tax offenders. It recommended increasing the use of technology to catc...