Islamabad, November 13, 2024 — Pakistan has reportedly achieved a breakthrough in its negotiations with the International Monetary Fund (IMF), successfully avoiding the need for a mini-budget while maintaining the existing revenue target of Rs12.97 trillion.
Sources within the Federal Board of Revenue (FBR) revealed that the IMF expressed satisfaction with Pakistan’s tax collection efforts, noting that the tax-to-GDP ratio rose from 8.8% to 10.3%, surpassing IMF expectations. This 1.5% improvement in the ratio has been welcomed by the IMF.
In addition, no general sales tax will be imposed on petroleum products, and a new tax collection initiative on agricultural income will commence next year.
Further discussions with the IMF are expected, focusing on adjustments to the trader-friendly scheme. The FBR highlighted that tax collection from retailers reached Rs12 billion over the past three months, with 400,000 new traders filing tax returns, increasing the total number of registered traders from 200,000 to 600,000.
