FBR rebuffs 'baseless' reports of IMF refusing to review tax target

The Federal Board of Revenue (FBR) has rebuffed the media reports claiming that the International Monetary Fund (IMF) has rejected the top tax-collection body’s request to review the tax target during a recent virtual meeting.

“It's regretted to note that some electronic media channels have aired an absolutely baseless and false story stating that IMF has rejected FBR's request for revision of targets,” the tax-collection body said in a statement on Saturday.

The FBR outrightly denied that any such meeting has taken place with the IMF on this subject.

“Nor this subject has ever been on the agenda of any of the meetings, virtual or otherwise, with the IMF,” it added.

Therefore, the statement said FBR not only rejected this news but also advised national media to refrain from “such fake stories which may affect our national interests adversely”.

According to a report published in The News on October 31, the FBR has faced a shortfall of Rs91 billion in achieving the tax collection target of the first quarter (July-Sept) period as the tax authorities could fetch only Rs2,563 billion.

The FBR had collected Rs9.299 trillion in the last fiscal year 2023-24 and envisaged to collect Rs12,913 billion for the current fiscal year. There were assumptions that the policy measures in the shape of rising tax rates would yield Rs1,190 billion, enforcement measures Rs320 billion, including Rs50 billion through retailers scheme, materialising revenues from Sindh, and import plus LSM growth was projected to yield Rs2,047 billion, as per the report.

In June, the incumbent government had passed a tax-heavy budget in its hopes of securing a fresh bailout package from the IMF. The move succeeded in securing a deal between Islamabad and the lender for a 37-month loan programme.

Since then, the country has already received the first tranche of $1.03 billion (SDR 760 million) under the EFF amid ongoing strenuous efforts by the government to address various economic challenges faced by the cash-strapped country.

With positive indications on the economic front such as a 31.1% reduction in the trade deficit, annual inflation rate of 7.2% etc, Islamabad has requested around $1 billion in a formal request for funding from the IMF facility that helps lows and middle-income countries manage external shocks, Finance Minister Muhammad Aurangzeb confirmed last month.

Pakistan's economy, as per the IMF's projection, is expected to experience a boost with a 3.2% GDP growth rate for the fiscal year 2025, amidst declining inflationary pressures.