Pakistan, March 6 -- The International Monetary Fund (IMF) is considering reducing Pakistan's tax collection target to below Rs12.5 trillion due to sluggish economic activity and a Rs606 billion shortfall in revenue. The final decision depends on the Finance Ministry's ability to cut expenditures while maintaining a Rs1.2 trillion primary budget surplus, a key condition of the IMF program.
Discussions between the IMF and Pakistani authorities focused on tax collection, energy sector performance, and external financing needs. The government proposed reducing the tax target by Rs579 billion, but the IMF indicated a possible cut of Rs435 billion. The Federal Board of Revenue (FBR) assured the IMF that March's tax target is achievable, though ...