IMF presses Pakistan to resolve pending FBR tax cases swiftly – SUCH TV

Pakistan and the International Monetary Fund (IMF) have launched their second review discussions under the ongoing loan program, focusing on revenue shortfalls, unresolved tax disputes, and fiscal reforms.

Federal Board of Revenue (FBR) sources confirmed that the IMF was briefed on the reasons behind missed tax collection targets.

The Fund reportedly urged authorities to expedite court cases involving the FBR particularly those related to super tax disputes.

According to officials, the FBR expects to recover nearly Rs200 billion if verdicts are delivered in its favor.

However, the delegation also informed the IMF that recent floods caused estimated tax revenue losses of around Rs60 billion.

During the talks, the FBR sought leniency in revenue targets, though the IMF has not yet responded.

Instead, the Fund pressed for structural measures to expand the tax base.

Sources added that Pakistan’s enforcement strategy to bridge the shortfall relies heavily on outcomes of pending super tax cases.

If court rulings go against the FBR, alternative measures will be required to secure the Rs200 billion shortfall.

The review talks also touched upon the new NFC Award, where Pakistani officials presented details of proposed revenue-sharing formulas.

Proposals include reducing the provincial share of resources, currently at 82 per cent based on population, to create fiscal space.

The IMF delegation was further briefed on last year’s fiscal targets at a meeting of the Fiscal Development Committee.

Today’s round of talks is expected to focus on the power sector and other key ministries.

Officials from the Finance Ministry expressed optimism, saying they remain hopeful about the success of ongoing negotiations with the IMF.