ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have started their second round of review talks on the ongoing loan program. The discussions are focusing on revenue shortfalls, unresolved tax cases, and fiscal reforms, sources told on Friday.
According to officials from the Federal Board of Revenue (FBR), the IMF was briefed on why tax collection targets were missed. The Fund urged Pakistan to speed up court cases linked to the FBR, especially those involving super tax disputes. FBR officials said they expect to recover nearly Rs200 billion if the verdicts go in their favor.
The government team also informed the IMF that the recent floods caused tax losses of around Rs60 billion. At the same time, the FBR asked for some relaxation in revenue targets. However, the IMF has not responded yet and instead pressed Pakistan to widen the tax net.
Sources added that resolving super tax cases will be a key part of the enforcement plan to make up for the revenue gap.
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