IMF has asked Pakistan to increase its tax revenue by Rs. 430 billion, setting a new target of Rs. 14.3 trillion for the financial year 2025–26. During recent virtual discussions, the IMF emphasized the need to expand the tax base, speed up the resolution of pending court cases, and take tougher enforcement actions. According to the IMF, Pakistan could raise around Rs. 600 billion just through better enforcement.
Finance Minister Muhammad Aurangzeb spoke about the current economic challenges Pakistan is facing. Meanwhile, the government’s own estimates suggest that total revenue might not go beyond Rs. 13.275 trillion about Rs. 1 trillion short of the IMF’s target.
To help bridge this gap, the IMF recommended several steps. These include upgrading FBR through digital systems, properly tracking industries that earn high revenues like tobacco, real estate, and beverages, and improving the monitoring of production data.
The goal is to ensure that more people and businesses pay their fair share of taxes and that tax collection becomes more efficient and transparent. If these suggestions are followed, Pakistan could strengthen its economy and reduce its reliance on loans.
