FBR shares with IMF plan to meet Rs605 billion tax shortfall

The Federal Board of Revenue (FBR) on Thursday handed over to the International Monetary Fund (IMF) its plan to meet the Rs605 billion tax shortfall, reported 24NewsHD TV channel.

Quoting its sources, the TV channel reported that the plan was shared with the IMF delegation during the ongoing negotiations for the second tranche of the loan programme for Pakistan.   

They informed that no mini-budget would be presented to meet the shortfall. Rather tax-related cases pending in courts would be disposed of at the earliest for the purpose, sources told 24News TV channel.  

They also informed that even the Chief Justice of Pakistan (CJP) Justice Yahya Afridi had approved the request for the early hearing of tax cases as the Supreme Court (SC) was due to start hearing the Super Tax case from next week. 

Sources disclosed that the FBR expected to receive Rs157 billion under the head of the Super Tax. 

The government has already won the windfall profit tax case, which has helped it receive Rs23 billion in tax. 

Sources said that the government received Rs72 billion in tax at the Advance Deposit Ratio.

The Fund officials received a briefing from the Benazir Income Support Programme (BISP) on the distribution of amounts to the poor and needy.  

Negotiations between Pakistan and the International Monetary Fund (IMF) for the release of a $1 billion loan tranche officially began on Monday.

A nine-member IMF review mission, led by Nathan Porter, arrived in Islamabad for the first economic review of Pakistan’s $7 billion bailout package.

According to the well-placed sources in the ministry, the talks will proceed in two phases: first, technical discussions, followed by policy-level negotiations.

Sources said Finance Minister Muhammad Aurangzeb will lead Pakistan’s delegation in policy-level talks, while IMF officials will engage with key institutions, including the Ministry of Finance, the Federal Board of Revenue (FBR), the Power Division, and the State Bank of Pakistan (SBP).

The sources further said that the IMF team will also hold discussions with the Ministry of Energy, Ministry of Planning, OGRA, and NEPRA.

Pakistan is expected to present a compliance report on the conditions of the $7 billion bailout program, covering the first half of the current fiscal year.

The delegation will also assess Pakistan’s economic performance and make recommendations for the next fiscal year’s budget.

The IMF mission will stay for two weeks, with talks concluding on March 15.

With economic uncertainty looming, these discussions are critical for securing the next loan installment and ensuring Pakistan’s adherence to IMF conditions.

Reporter: Waqas Azeem