A team from the International Monetary Fund (IMF) arrived in Pakistan on Monday, embarking on a mission to enhance the country’s tax revenue systems.
The visit marks a critical phase in Pakistan’s efforts to expand its tax net. The IMF’s technical experts will consult with the Federal Board of Revenue (FBR) weekly. Their primary objective is to propose revisions to the existing tax policy. These amendments aim to broaden the tax base and maximise tax collection efficiency.
The IMF and FBR teams will collaboratively develop a foundational strategy to introduce new schemes for retailers. This initiative is expected to incorporate an additional one million taxpayers, raising the total to six million. The amendments devised during these consultations are slated for implementation in the upcoming budget.
The consultation phase regarding the tax net is crucial but will not influence the ongoing process of the loan tranche transfer from the IMF. It is anticipated that the IMF executive board will likely approve the staff-level agreement with Pakistan on December 7.
Following the approval, Pakistan is set to receive about US$700 million, increasing the total program disbursements to nearly US$1.9 billion.