ISLAMABAD: The government has reached an agreement with the International Monetary Fund (IMF) to reduce Pakistan’s tax collection target by Rs150 billion, official sources confirmed on Thursday.
According to Federal Board of Revenue (FBR) officials, the target has been revised down from Rs14.131 trillion to Rs13.981 trillion for the current fiscal year. The IMF, however, has sought a globally verified report on flood-related damages before considering any further adjustments.
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Sources revealed that under the revised economic framework, Pakistan is now expected to achieve a GDP growth rate of 3.5% and a tax-to-GDP ratio of 11%, though the government’s initial projection of Rs129 trillion GDP appears increasingly unrealistic.
Both sides have finalised a new draft of the Memorandum of Economic and Financial Policies (MEFP), aligning key macroeconomic indicators. Once the $1.2 billion IMF tranche is disbursed, all revised benchmarks and fiscal targets will be incorporated into the updated IMF country report, sources added.
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The latest adjustment reflects ongoing negotiations between Islamabad and the global lender amid slower-than-expected revenue growth, rising expenditures, and the need to maintain fiscal discipline while supporting post-flood recovery efforts.