ISLAMABAD: The government on Thursday reached an agreement with the International Monetary Fund (IMF) to reduce the tax collection target by Rs150 billion.
According to FBR sources, the target has been revised down from Rs14.131 trillion to Rs13.981 trillion. For any further reduction, the IMF has sought a globally verified report detailing the flood-related damages.
It was reported that Pakistan will need to achieve a GDP growth rate of 3.5% and a tax-to-GDP ratio of 11%, though the current fiscal year’s GDP is unlikely to meet the Rs129 trillion target.
Sources added that under the new MEFP (Memorandum of Economic and Financial Policies) draft, both sides have agreed to adjust the macroeconomic framework. Once the $1.2 billion tranche is released, all benchmarks will be incorporated into the new IMF country report.
