The Federal Board of Revenue (FBR) has denied media reports claiming that the International Monetary Fund (IMF) rejected the top tax collection body’s request to review the tax target during a recent virtual meeting.
“It is unfortunate to note that some electronic media channels have broadcast a false and completely baseless story that the IMF has rejected the FBR’s request to review the targets,” the tax collector said in a statement on Saturday.
The Fed categorically denied holding any such meeting with the IMF on the matter.
He added: “This topic was not at all on the agenda of any of the meetings, virtual or otherwise, with the IMF.”
Therefore, the statement said that the FBR not only rejected this news, but also advised the national media to refrain from “such fake stories that may negatively impact our national interests.”
According to a report published in News On October 31, the RBI faced a shortfall of Rs91 billion in meeting its tax collection target in the first quarter (July-September) as tax authorities could bring in only Rs2,563 billion.
FBR raised Rs 9.299 trillion in the last fiscal year 2023-24 and expects to collect Rs 12.913 billion for the current fiscal year. There were assumptions that policy measures in the form of higher tax rates would generate Rs 1,190 billion, enforcement measures Rs 320 billion, including Rs 50 billion through the retailers scheme, revenue generation from Sindh, imports plus LSM growth were expected to achieve Rs 2,047 rupee. Billion dollars, according to the report.
In June, the current government passed a tax-heavy budget in the hope of obtaining a new bailout from the International Monetary Fund. This step succeeded in reaching an agreement between Islamabad and the lender on a 37-month loan program.
Since then, the country has already received the first tranche of $1.03 billion (SDR 760 million) under the Extended Fund Facility Program amid ongoing strenuous efforts by the government to address the various economic challenges faced by the cash-strapped country.
With positive indicators on the economic front such as a decline in trade deficit by 31.1%, annual inflation rate of 7.2%, etc., Islamabad has requested around $1 billion in a formal request for financing from the IMF facility that helps low- and middle-income countries. Finance Minister Muhammad Aurangzeb last month asserted that the country was capable of managing external shocks.
According to International Monetary Fund forecasts, the Pakistani economy is expected to witness a strong boost with a GDP growth rate of 3.2% for the fiscal year 2025, amid a decline in inflationary pressures.