FBR shares plan with IMF to address revenue shortfall

Tax collection from under-taxed sectors and expediting legal cases in courts are also prioritised to meet targets

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Federal Board of Revenue (FBR) has shared its plan with the International Monetary Fund (IMF) to address a significant revenue shortfall, as the country prepares for an upcoming IMF delegation visit.

According to Express News, the FBR’s strategy includes accelerating container clearances at ports, auctioning smuggled goods, and improving enforcement capacity.

Tax collection from under-taxed sectors and expediting legal cases in courts are also prioritised to meet revenue targets.

For January, the FBR faces an ambitious tax target of Rs960 billion. When adjusted for the existing Rs385 billion shortfall, the overall collection requirement rises to Rs1,340 billion. Officials confirmed that all necessary measures are being implemented to ensure compliance.

The IMF delegation is expected to review the progress on these reforms and other fiscal commitments.

Pakistan's economy remains under pressure, with revenue generation being critical to meet IMF loan conditions and stabilise the country’s financial outlook.

IMF revises Pakistan’s GDP growth outlook for 2025 to 3%

Earlier, the International Monetary Fund (IMF) has revised Pakistan's economic outlook, downgrading its projected Gross Domestic Product (GDP) growth for 2025 to 3%, down from 3.2% forecasted just three months ago.

The adjustment comes amid a broader global economic assessment presented in the IMF's "World Economic Outlook Update: Global Growth – Divergent and Uncertain."

The IMF's revised projections also indicate that Pakistan’s GDP growth will remain at 4% in 2026. However, the latest downgrade reflects ongoing economic challenges in the country, although the IMF did not provide specific reasons for the revision.

This latest revision mirrors the forecast made by the Asian Development Bank (ADB) last month, which also adjusted Pakistan’s growth forecast to 3% for the fiscal year 2024-25, up from a previously projected 2.8%.

Both institutions have cited challenges faced by Pakistan's economy but have maintained a cautiously optimistic outlook for the medium-term.