News Desk
Islamabad – Pakistan faces an urgent challenge as only five days remain to meet a critical International Monetary Fund (IMF) condition, requiring an additional Rs. 1 trillion in tax revenue.
Finance Minister Muhammad Aurangzeb expressed optimism that the IMF program would continue but refrained from clarifying whether the government would introduce a mini-budget or renegotiate annual tax targets, which have already fallen short.
The Federal Board of Revenue (FBR) has managed to collect only half of its Rs. 1.37 trillion monthly tax target with just days left in December. To meet IMF conditions, the FBR must achieve Rs. 6.009 trillion in tax revenue for the first half of the fiscal year, from July to December.
The government hinted at a compromise with commercial banks on the 15% additional advance-to-deposit tax but acknowledged that non-filers would still be allowed to engage in transactions except for purchasing properties, vehicles, and shares.
“When the IMF mission arrives, we will negotiate in good faith, as we are making every effort to meet the targets,” said the finance minister.
He admitted that ambitious goals, including a 40% increase in tax collection compared to last year’s 29% growth, were proving challenging due to ineffective tax policies and economic assumptions.
Economic Stability Through Tax Reforms
Minister Aurangzeb emphasized that tax reforms are central to the government’s structural reform agenda. Efforts are underway to improve revenue collection and reduce fiscal deficits to curb inflation. The government aims to raise the tax-to-GDP ratio to 13.5% within three years.
He highlighted the use of digitization to ensure transparency, reduce corruption, and boost revenue. Efforts to close tax gaps and curb leakages are being focused on sectors like sugar, cement, and textiles.
“Economic stability requires controlling deficits, and inflation has already dropped from 30-40% to 5%,” he said.
Inclusive Burden Sharing
Minister of State for Finance Ali Pervaiz Malik stressed the need for equitable contribution from all sectors. “We want the burden to be shared fairly so that it does not fall solely on salaried individuals and industries. Wealthy individuals must also contribute their fair share to Pakistan’s progress,” he said.
The government remains committed to stabilizing the economy through structural reforms, enhanced tax compliance, and digital innovations. However, the race to meet the IMF conditions within the remaining days remains a critical challenge.
