Pakistan, May 21 -- Prime Minister Shehbaz Sharif has asked the International Monetary Fund (IMF) to allow a cut in next year's tax target. The government wants to reduce the Federal Board of Revenue's (FBR) target by Rs250 billion for fiscal year 2025-26. The proposed target is Rs14,057 billion, instead of the earlier Rs14,307 billion. Officials say this change is needed to avoid adding new taxes.

FBR officials shared concerns with the IMF during recent talks. They warned that tax collection is already lower than expected this year. So far, a Rs1,170 billion shortfall is likely due to slow growth and lower inflation. Therefore, they believe a higher target next year could lead to failure and more financial pressure.

To support revenue ...