IMF Reveals Corruption Scandal Within Federal Board Of Revenue

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IMF Reveals Corruption Scandal Within Federal Board Of Revenue

The International Monetary Fund (IMF) has submitted its Governance and Corruption Diagnostic Assessment report to Pakistan’s Finance Division. The report raises concerns about corruption in the Federal Board of Revenue (FBR) and calls for urgent reforms.

According to the IMF, there is a strong need to reduce tax exemptions and improve transparency within the FBR. The report recommends cutting back on special tax regimes, advance taxes, and extra withholding taxes. The IMF has asked FBR to create a clear strategy to manage these changes.

To improve tax policy, the IMF suggests separating tax policy development from the FBR’s operational duties. This move could help make tax rules easier to understand and follow.

The IMF report also addresses broader governance issues. It proposes granting full independence to the Auditor General of Pakistan. The fund also recommends stopping the practice of creating supplementary grants without parliament’s approval.

The Finance Ministry has been asked to improve the national budget process. The IMF wants better planning and more transparent use of public funds.

The report is based on a review conducted by an IMF team in April. The team met with over 30 government departments during their visit. The findings are expected to guide future reforms under Pakistan’s ongoing agreement with the IMF.

The fund has requested a progress update by May 2026. It also wants Pakistan to publish a governance action plan based on the report’s recommendations.

These steps are part of a broader plan to fight corruption, improve public trust, and ensure better economic management. The IMF’s suggestions aim to support Pakistan in making its tax system more efficient and accountable.


Meanwhile,The government plans to reduce circular debt to Rs561bn under the IMF agreement, as detailed in Govt Moves to Slash Circular Debt to Rs561bn Under IMF Agreement.

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