Pakistan is aiming to recover Rs. 200 billion from pending super tax cases as talks with the International Monetary Fund (IMF) continue. The Federal Board of Revenue (FBR) has presented a detailed plan to address the country’s revenue shortfall.
FBR officials said a verdict on the super tax cases is expected by the end of September or early October. If the decision favors the FBR, the authorities plan to immediately recover the amount. If the verdict is unfavorable, additional measures worth Rs. 180-200 billion will be required, officials informed the IMF.
The FBR also highlighted that recent floods have caused estimated tax losses of Rs. 55-60 billion. Pakistan has requested relief in tax targets from the IMF, though no final response has been received yet. Enforcement actions and the possible introduction of a flood levy are under consideration to boost revenues further.
During discussions, the IMF emphasized the need for Pakistan to broaden its tax base, noting that tax rates in the country are already higher than those in the region. The FBR also briefed the IMF on fiscal development and the National Finance Commission (NFC) process. Officials proposed reducing the provinces’ share in the new NFC Award from the current 82% based on population. They also decided to transfer the Benazir Income Support Programme to the provinces, stressing the importance of local revenue generation.
The President of Pakistan has appointed the Finance Minister as chairman of the 11th NFC Award. Last fiscal year, government expenditures reached 21.4% of GDP, up from 19.5% in 2023-24. The fiscal deficit exceeded Rs. 6.1 trillion.
The FBR’s recovery strategy and ongoing discussions with the IMF reflect Pakistan’s efforts to strengthen public finances. Officials hope the verdict will help stabilize the economy and ensure sufficient revenue collection.
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