IMF’s Tough Demand, Recover Rs300 Billion Tax Shortfall Immediately

The International Monetary Fund (IMF) has urged Pakistan to swiftly implement rightsizing measures to reduce expenditures. This demand came as ongoing discussions between the IMF and Pakistani authorities continue under the $7 billion loan program’s first economic review.

The IMF delegation held negotiations with officials from the Cabinet Division, Ministry of Finance, and the Secretary of the Cabinet to discuss expenditure cuts.

The global lender has also called for urgent measures to recover the Rs300 billion tax shortfall in the next quarter. The Federal Board of Revenue (FBR) has been instructed to take strict action against major retailers operating outside the tax net in cities like Islamabad, Karachi, and Lahore.

Additionally, the IMF delegation engaged in discussions with the Ministry of Energy and Petroleum to review sectoral performance. Talks were also held with the State Bank of Pakistan (SBP) regarding Islamic banking practices, the refinance scheme transition, and development finance.

Experts warn that failure to meet IMF conditions could delay Pakistan’s access to the next loan tranche, further straining the economy.