ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are close to reaching a consensus on the revised economic and fiscal framework for the current financial year.
Under the framework, the Federal Board of Revenue (FBR)’s tax collection target has been reduced to PKR 13.45 trillion by June 2026.
Virtual negotiations are ongoing between IMF officials and Pakistani authorities to reach a staff-level agreement under the $7 billion Extended Fund Facility (EFF) program.
Sources indicate that the FBR may struggle to achieve the IMF-agreed target of 11% tax-to-GDP ratio for the fiscal year 2025-26.
In the first eight months of the current financial year, tax collection fell short by PKR 428 billion compared to the revised target.
