The International Monetary Fund (IMF) has called on Pakistan to generate an additional Rs. 430 billion in taxes to meet the ambitious Rs. 14.3 trillion tax revenue target set for the 2025–26 federal budget, official sources told ProPakistani.
The demand was made during the second round of virtual talks between the IMF and Pakistan’s economic team. The Fund emphasized the urgent need for reforms to broaden the tax base, resolve long-standing tax cases, and improve overall tax administration.
The IMF suggested that Rs. 600 billion could be raised through stricter enforcement measures alone. It also urged the government to document high-potential sectors such as tobacco, beverages, and real estate, and to enhance the Federal Board of Revenue’s (FBR) data collection, automation, and real-time monitoring capabilities.
Finance Minister Muhammad Aurangzeb briefed the IMF on Pakistan’s economic outlook and the challenges posed by sluggish growth and persistent inflation. Government projections indicate that total tax revenue may fall short, reaching only Rs. 13.275 trillion.
The IMF also reiterated its call for the timely resolution of tax cases pending in courts and stressed the importance of maintaining primary balance targets under the ongoing Extended Fund Facility (EFF) program.
