ISLAMABAD: Pakistan faces new financial challenges as the International Monetary Fund (IMF) has urged the government to adopt more stringent revenue-boosting measures. The IMF’s demand follows Pakistan’s revenue shortfall during the first four months of the fiscal year.
IMF Rejects Request to Lower Tax Target
The Federal Board of Revenue (FBR) confirmed that Pakistan had formally requested the IMF to review and lower the tax target in a recent virtual meeting. However, the IMF rejected this appeal. The IMF’s firm stance means Pakistan must find additional ways to meet its revenue targets or risk complications in obtaining the next installment of the bailout package.
Possible Hardship for Second Bailout Installment
FBR sources warned that the country might face difficulties in securing the second installment of the IMF bailout due to the revenue shortfall. The government is now expected to implement new revenue-enhancing measures in the coming months to bridge the gap. This development raises concerns about Pakistan’s economic stability and the steps it may need to take to satisfy IMF requirements.
FBR Denies Media Claims of IMF Meeting
In response to reports circulating on several TV channels, the FBR issued a statement denying that any such meeting with the IMF took place. The FBR called the reports “baseless” and “fabricated,” emphasizing that the tax target revision was never on the agenda of any meeting with the IMF.
FBR Appeals for Responsible Reporting
In its statement, the FBR urged media outlets to avoid spreading “fake news” that could harm Pakistan’s national interests. It expressed regret over the inaccurate reports aired by some channels, clarifying that they could damage public perception and lead to unnecessary anxiety regarding Pakistan’s financial outlook.
Government’s Revenue Strategy Under Scrutiny
The government’s revenue strategy has come under renewed scrutiny as it seeks to fulfill IMF requirements. Analysts suggest that new taxes or stricter enforcement could be implemented to increase revenue. However, these measures may place an additional burden on citizens already facing inflationary pressures.
Impact on Pakistan’s Economic Stability
Economic experts warn that failure to meet IMF revenue targets could hinder Pakistan’s access to future financial aid. This revenue shortfall not only jeopardizes the IMF bailout package but could also affect investor confidence and economic growth.
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