A significant breakthrough has reportedly been achieved in negotiations between Pakistan and the International Monetary Fund (IMF). A mini-budget has been avoided, and the current revenue target of Rs12.97 trillion remains unchanged.
According to sources within the Federal Board of Revenue (FBR), the IMF has expressed satisfaction with Pakistan’s tax collection efforts.
The tax-to-GDP ratio has increased from 8.8% to 10.3%, exceeding the IMF’s expectations. The IMF is reportedly pleased with the 1.5% improvement in tax-to-GDP ratio.
Furthermore, there will be no general sales tax imposed on petroleum products. Tax collection on agricultural income will begin next year.
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Further discussions with the IMF are expected, particularly regarding modifications to the trader’s friendly scheme. Sources indicate that negotiations are anticipated to focus on some adjustments to this scheme.
The FBR also highlighted positive developments in tax collection: 12 billion rupees have been collected from retailers in the last three months, and 400,000 new traders have filed tax returns, increasing the number of registered traders from 200,000 to 600,000.
