Pakistan, May 17 -- The International Monetary Fund (IMF) has raised concerns over a major shortfall in Pakistan's upcoming tax target. Pakistan plans to collect Rs14.3 trillion in taxes in the 2025-26 fiscal year. However, the IMF believes this target could fall short by over Rs1 trillion without strong new measures. The government must now either introduce more taxes or boost enforcement to meet the target.

Pakistan had earlier discussed raising Rs560 billion through new taxes. But the IMF doubts this will be enough. Last year, even after adding Rs1.3 trillion in new taxes, Pakistan missed its tax goal. The IMF expects that without major policy changes, tax collection may reach only Rs13.3 trillion. This could put the country off-track...