The International Monetary Fund (IMF) and Pakistan are scheduled to resume their technical discussion on next year’s budget (2022–23) on Tuesday (today).
The IMF mentioned in a handout on Wednesday that its team looks forward to continuing its dialogue and close engagement with the Government of Pakistan on policies to ensure macroeconomic stability for the benefit of all of Pakistan’s citizens.
Sources said that the Pakistani side would brief the staff team about the proposals prepared by the tax officials.
Moreover, the IMF has asked Pakistan to set a revenue target of Rs. 7,255 billion for the next fiscal year, which is Rs. 1,255 billion more than this year’s target.
The Federal Board of Revenue (FBR) is optimistic that it will collect Rs. 6,000 billion in taxes during the current fiscal year.
The sources said that the government would generate billions of rupees in revenue by eliminating sales tax exemptions, while the FBR has also prepared different proposals regarding taxing the salaried class.
The recent increase in petrol price was a key issue, which Pakistan conceded after increasing the discount rate. The inflation target for the next fiscal year, subsidy, and budget deficit are still points to be reconsidered by IMF. IMF asked to reduce these targets in the Doha talks, which ended without a staff level agreement, which can be achieved this time.
