The International Monetary Fund (IMF) has in principle agreed that Pakistan’s tax collection target for the current financial year can be reduced by Rs. 160 billion, according to official sources, are aware of the ongoing review talks.
Under the new understanding, Pakistan will need to collect lakhs of rupees. 13.971 trillion in taxes, below the original target of rupees. 14.131 trillion.
However, sources say the final approval of the revised target will remain with the IMF’s executive board.
The Draft Memorandum of Economic and Financial Policy (MEFP) has been shared with Pakistan’s economic team, and officials are hopeful that an agreement will be signed after assuring Pakistan’s affiliation with the MFP.
Finance officials have termed the two -week talks positive and constructive, key goals have been finalized before the departure of the IMF delegation.
He expressed the hope that the second review of the loan program would be completed successfully, which would pave the way for Pakistan to release a $ 1.2 billion tranch.
The two sides have agreed to continue the virtual discussion to finalize the agreement. The Ministry of Finance said that with the IMF has so far been “constructive and positive”, and the government expects a successful result.