IMF sets 11 new conditions for Pakistan

IMF sets 11 new conditions for Pakistan

The International Monetary Fund (IMF) has imposed 11 new conditions on Pakistan as the government prepares the budget for the next fiscal year. Officials now plan to introduce nearly Rs430 billion in additional taxes, a move that could increase the financial burden on the public.

According to sources, the IMF has proposed a tax collection target of Rs15.267 trillion for the Federal Board of Revenue (FBR) in the upcoming fiscal year. The government also expects to collect around Rs1.727 trillion through petroleum levy charges. At the same time, authorities are considering an increase in gas tariffs and electricity prices to strengthen revenue generation.

The government has assured the IMF that it will take stronger measures to improve tax collection and reduce tax evasion across key sectors of the economy.

Officials revealed that the sugar, cement, tobacco, and fertilizer industries contain an estimated tax gap of nearly Rs160 billion. In response, the government has introduced a stricter monitoring system in these sectors to prevent revenue losses and improve transparency.

During a briefing to the IMF, authorities explained that the FBR is introducing a modern tax enforcement system to boost revenue collection. The new Customer Relationship Management (CRM) system will help identify major tax evaders more effectively.

The FBR has already recruited 431 new auditors, while another 396 officers are expected to join by June. Authorities believe the strengthened audit framework could generate an additional Rs92 billion in revenue by 2027.

The government has also made digital invoicing mandatory for all sales tax registered businesses. Officials estimate that this step alone could add nearly Rs46 billion in extra tax revenue by improving documentation and reducing underreporting in the market.