Technical-level talks between Pakistan and the International Monetary Fund (IMF) have begun, with the government’s economic team starting initial data sharing.
The discussions, led by the Federal Board of Revenue (FBR) chairman, focused on revenue collection progress and strategies to address possible shortfalls.
FBR briefs IMF on tax revenue progress
During the meeting, the FBR team updated the IMF mission on tax revenue performance in the current fiscal year. According to sources, a detailed briefing was given on the progress made toward revenue targets and the possible tax shortfall in the first quarter.
The delegation also highlighted that recent severe floods had negatively impacted tax collection efforts.
Alternative plan to address shortfall
Officials shared that an alternative plan was being prepared to address potential revenue gaps. The IMF was also briefed on the progress of legislation aimed at expanding Pakistan’s tax net.
Also Read: IMF mission reaches Pakistan for second economic review talks
The FBR’s Member Land Revenue Operations and Member Legal participated in the talks, providing detailed updates on reforms and compliance measures.
Engagements with IMF mission
Beyond the FBR, the IMF mission is scheduled to meet with officials from the Ministry of Finance and the State Bank of Pakistan later this week. Separate meetings with provincial government representatives are also planned for next week.
Federal Finance Minister Muhammad Aurangzeb is expected to hold a high-level meeting with the IMF delegation on Monday to review the progress of technical talks and outline the government’s fiscal roadmap.
Also Read: Pakistan opens old vehicle imports to meet IMF condition
Earlier today, an IMF mission arrived in Pakistan for the second review of the country’s economy under the $7 billion loan program. Formal discussions would start on September 29 (Monday) due to Finance Minister Muhammad Aurangzeb’s visit to the United States.
Technical and formal talks schedule
According to the Ministry of Finance, the State Bank, Finance Ministry, and Federal Board of Revenue (FBR) officials will hold an initial meeting today ahead of the IMF delegation’s formal engagement.
The IMF team will remain in Pakistan for two weeks, holding both technical and policy-level talks. The next tranche of $1 billion will be released once the second review is successfully completed.
Pakistan seeks relaxation of loan terms
Islamabad has requested that the IMF relax its conditions for the loan in light of the devastating floods, which continue to strain the economy. Officials have assured that relief measures will be funded without a mini-budget to generate additional tax revenue.
