As talks with the International Monetary Fund (IMF) are underway, Pakistan has proposed a comprehensive plan to remove its shortage of taxes, which is banned from possible rupees. Super tax cases pending in favor of the Federal Board of Revenue (FBR) have been decided.
According to FBR sources, a decision on super tax cases is expected by the end of September or the beginning of October. If the decision supports the FBR, authorities have intended to immediately recover the money to eliminate the revenue gap. However, if this decision is against the FBR, additional steps are priced. 180-200 billion will be required, officials have written a letter to the IMF.
The FBR also informed the IMF that tax of Rs 500 is proposed in the initial estimate. 55-60 billion due to the recent flood. Pakistan has requested some relief from the IMF in its tax targets, but no final response has been received so far.
The implementation measures and the potential introduction to flood revenue are under consideration to increase revenue. In the meantime, the IMF has called on Pakistan to expand its tax owners, saying that the country’s tax rate is already high in the region.
The briefings also covered the National Finance Commission (NFC) process and financial development. Officials proposed to reduce the part of the provinces from the current 82 % (population -based) in the new NFC award and decided to transfer the Benzier Income Support Program to the provinces, and emphasized the need for the provinces to increase their income.
The President of Pakistan has appointed the Finance Minister as Chairman of the 11th NFC Award. The last financial year, government expenditures of GDP reached 21.4 %, while in 2023-24, compared to 19.5 %, the fiscal deficit is more than rupees. 6.1 trillion.