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IMF urges Rs430b provincial tax hike

Provinces will contribute the additional tax revenue in accordance with their respective shares under the NFC Award

Our Correspondent August 02, 2026 Less than a minute read

The International Monetary Fund logo is seen during the IMF/World Bank spring meetings in Washington, U.S., April 21, 2017. REUTERS

LAHORE:

The IMF has urged Pakistan's provinces to impose additional taxes to increase their own-source revenues during the current fiscal year, with the four provinces collectively expected to generate an additional Rs430 billion in tax receipts.

According to official details, the additional tax collection target of Rs430 billion is equivalent to 0.3 per cent of the country's Gross Domestic Product (GDP).

The provinces will contribute the additional tax revenue in accordance with their respective shares under the National Finance Commission (NFC) Award.

Meanwhile, the federal government is constituting an inter-ministerial committee, headed by the prime minister, to ensure implementation of decisions taken by the National Economic Council (NEC).

The committee, comprising federal and provincial ministers as well as senior government officials, will oversee the implementation of national policies and monitor progress on key initiatives.

Sources said the inter-ministerial committee will also be responsible for strengthening coordination and cooperation between the federation and the provinces and ensuring effective monitoring of national development projects.

COMMENTS (2)

Fawad Khan | 3 weeks ago | Reply IMF is the real enemy of Pakistan.. iMF can t see the protocols by Govt The extra expenses by Army their businesses where they aren t paying taxes they have several businesses where the tax is exempted. IMF can only see the poor Nation to loot them by the name of Taxes.

Hassan | 3 weeks ago | Reply Why we are wasting money on the government score of Minister Junior Minister Bureaucrats and ten thousands more working in the government machinery if IMF has to decide to suck more public blood and government has toe the lines. We can at least give some relief to the public by relieving government officials and public office bearers.

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