IMF proposes over Rs 15 trillion tax target for Pakistan in next budget

ISLAMABAD: The International Monetary Fund (IMF) has proposed a tax collection target exceeding Rs 15 trillion for Pakistan in the upcoming budget, as virtual negotiations between the IMF and the government are near completion.

According to sources, around 85% of the discussions have been successfully concluded, with the primary focus on finalizing the financial framework for the next fiscal year. The budget is expected to be presented in the National Assembly soon.

As part of the new financial targets, the government aims to increase the tax-to-GDP ratio to 13% while collecting Rs 2,745 billion in non-tax revenue. Additionally, the economy is projected to grow by over 4% in the next fiscal year, driven by increased investment and consumer spending.

The IMF has advised Pakistan’s Special Investment Facilitation Council (SIFC) against granting tax exemptions to international investment projects, including the $2 billion Chaghi-Gwadar railway track project. The organization has emphasized the need for a consistent and broad-based tax policy to enhance revenue generation.