Islamabad, September 26, 2025: The International Monetary Fund (IMF) has urged the Federal Board of Revenue (FBR) to expedite resolution of pending court cases, particularly those concerning the super tax, as part of Pakistan’s ongoing fiscal reform commitments.
According to sources, the FBR expects to recover nearly Rs200 billion if key super tax cases are decided in its favor — a sum seen as critical to plugging the widening revenue gap.
During ongoing technical-level talks, Pakistani officials informed the IMF delegation that recent floods have caused an estimated Rs60 billion in tax losses. In response, the FBR requested some relief in the current tax collection target. However, the IMF delegation withheld any assurance, instead stressing the need to broaden the tax base.
Officials cautioned that if the court rulings go against the FBR, the government would be forced to adopt alternative revenue measures to meet the shortfall.
The briefing also touched upon the upcoming National Finance Commission (NFC) Award, with discussions on revising the formula for revenue distribution. Sources indicated that the provincial share in federal taxes, currently 82% based on population, could be reduced under the proposed framework.
Separately, in a fiscal review session, Pakistani officials highlighted revenue targets achieved in the last financial year. Talks between the IMF and various ministries, including the Power Division, are scheduled to continue today. Officials from the Ministry of Finance expressed optimism over the outcome, noting that the IMF had responded positively to Thursday’s presentation on economic performance.
