Saturday, July 20, 2024

IMF Satisfied with Pakistan’s 2024-25 Budget: Report

The International Monetary Fund (IMF) has expressed approval of Pakistan’s upcoming fiscal budget, while recommending the elimination of tax exemptions exceeding Rs 3 trillion.

This recommendation is part of Pakistan’s efforts to secure a loan of $6 to $8 billion from the IMF, aimed at boosting the country’s foreign reserves. An agreement at the staff level between Pakistan and the IMF is anticipated by June or July.

To achieve its financial targets, the Federal Board of Revenue (FBR) has set an ambitious goal of collecting over Rs 3.8 trillion in taxes. The FBR plans to employ advanced technology to curb tax evasion and ensure more efficient tax collection. In a significant political development, various parties in Pakistan have agreed not to politicize the IMF program.

This consensus is expected to facilitate the program’s implementation at both federal and provincial levels, ensuring smooth execution of the IMF’s recommendations.

For the fiscal year 2025, Pakistan’s budget is set at Rs 18.877 trillion, marking a 29% increase in current expenditure from the previous year. This budget includes several measures aimed at managing economic challenges and supporting development projects across the country.

To increase non-tax revenue, the government plans to raise the Petroleum Development Levy to Rs 80 per liter, aiming to collect approximately Rs 1.3 trillion. The additional funds generated from this levy will be used to support various government initiatives and help reduce the fiscal deficit.

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