IMF convinced by provincial budget surplus

The International Monetary Fund (IMF) has been convinced by provincial budget surplus on Friday.

According to details, after five days of intense discussions, Pakistan and the IMF had concluded their negotiations. Led by IMF Mission Chief Nathan Porter, the talks covered a wide range of economic issues, including provincial budgets, tax reforms, and foreign financing arrangements.

The ministry of finance said: "We have managed to convince the IMF mission on the provincial surplus."

"The IMF has been pressing for the collection of taxes on agricultural income starting January. We have made headway, but further work remains to be done on this front," the source added.

Pakistan assured the IMF of securing external financing to support its fiscal policies. "The government has made firm commitments regarding external financing arrangements," sources confirmed.

The IMF mission also conducted detailed reviews of various sectors, including property prices across different cities.

On the final day of talks, federal finance minister and officials from the Federal Board of Revenue (FBR) participated in discussions with provincial representatives.

The IMF raised concerns about the timely passage of laws, particularly in Sindh, urging the provincial government to expedite legislation.

Similarly, Khyber Pakhtunkhwa has made progress in its preparatory work, sources noted.

The discussions also centered around the government's tax collection targets. Pakistan is aiming to meet a tax target of Rs 12,970 billion, with efforts to accelerate collection procedures.

"We are focused on meeting the tax target, and our goal is to intensify efforts to achieve this," a ministry official stated.

In terms of provincial budgets, the latest figures indicate that Pakistan has surpassed its surplus target. The provincial surplus for the first quarter of 2024-25 was reported at Rs360billion, surpassing the target of Rs342billion set under the IMF agreement.

Specifically, Punjab recorded a surplus of Rs40billion during July-September, reversing previous reports that indicated a deficit of Rs160billion.