The International Monetary Fund (IMF) delegation is expected to visit Pakistan twice before June this year to review the country’s economic performance and key financial targets.
The visits are crucial for the release of the second $1 billion tranche under the ongoing $7 billion bailout program.
According to Finance Ministry officials, the first visit of the IMF team is anticipated next month, during which economic review talks will take place. The delegation will assess Pakistan’s progress on economic reforms from July to December, including tax collection, agricultural income, and expansion of the tax net. If the review is successful, Pakistan will receive the next loan installment of $1 billion.
A second IMF visit is expected before June, during which consultations will be held on the budget for the upcoming fiscal year. The IMF is likely to provide input on taxation policies, while it will be persuaded to reduce tax rates on the property sector.
Meanwhile, the Federal Board of Revenue (FBR) has collected over Rs800 billion in taxes by January 30. The tax target for January 2025 stands at Rs956 billion, and officials anticipate a shortfall of Rs40-50 billion, which they do not view as a major concern. Officials say that despite the shortfall, the current fiscal year’s tax deficit of Rs12,970 billion would be achieved.
The FBR aims to collect Rs3,150 billion in taxes from January to March, with expectations of higher revenues as economic activity picks up in March. Notably, in December 2024, the FBR achieved a historic tax collection of Rs1,330 billion.
