The International Monetary Fund has urged Pakistan to cover its revenue shortfall by ensuring full recovery of the Super Tax, according to official sources.
The push follows a key ruling by the Federal Constitutional Court, which dismissed petitions challenging the Super Tax. The court upheld Section 4B of the Income Tax Ordinance, 2001, and partially set aside High Court judgments related to Section 4C, clearing legal hurdles for tax recovery.
The verdict has enabled the Federal Board of Revenue to speed up collection efforts. Official data shows the FBR missed its tax collection target for the first half of the fiscal year, leaving a revenue gap of Rs335 billion between July and December.
Sources said the IMF and FBR held virtual talks after the ruling. During the discussions, the IMF welcomed the decision and pressed Pakistan to meet the agreed tax targets. The lender reportedly asked authorities to complete all pending Super Tax recoveries this month.
Read: Pakistan to Seek Leniency, Renegotiation of IMF Programme Terms
Estimates suggest Super Tax collections could reach nearly Rs380 billion by June 2026. Around Rs300 billion is expected in the near term, while another Rs80 billion may be collected by the end of the fiscal year.
Officials believe full recovery of the Super Tax will help eliminate the revenue shortfall by December. Sources added that the FBR’s legal wing has completed preparations to defend the levy in the Supreme Court, amid strong IMF pressure to resolve remaining litigation.
Under the Finance Bill, the Super Tax applies to large companies, with rates ranging from 1% to 10% based on profitability. Authorities have stressed that Pakistan will address the revenue gap through higher tax collection, not short-term measures such as a mini-budget.
