The International Monetary Fund (IMF) has urged Pakistan to increase tax revenues by Rs430 billion to set an ambitious Rs14.3 trillion tax collection target for the upcoming 2025–26 federal budget, says in media reports. This recommendation was made during the second round of virtual negotiations between the IMF and the government, where detailed discussions centered around revenue targets and fiscal policy. 

The IMF emphasized the need for urgent action to broaden the tax base, including swift resolution of tax-related court cases and the implementation of stronger enforcement measures. 

The Fund proposed a significant increase in tax revenue, suggesting that Pakistan set a tax collection target of Rs 14.3 trillion for the next fiscal year with an additional taxes of Rs 430 billion to be generated through new taxation measures. IMF also suggested that Rs600 billion can be raised solely through enforcement actions. 

Credit: Independent News Pakistan (INP)