IMF Urges High Tax Target for Pakistan Amid Budget Talks

The International Monetary Fund (IMF) has proposed a tax target of over Rs 15 trillion for Pakistan's upcoming budget. Discussions are ongoing, with the IMF advising against tax exemptions for international projects. The budget aims to increase the tax-to-GDP ratio and anticipates significant economic growth driven by investment.

The International Monetary Fund (IMF) has set a high tax revenue target of over Rs 15 trillion for Pakistan in its upcoming budget, as reported by ARY News on Saturday.

This decision follows days of negotiations, where the IMF recommended that Pakistan's Special Investment Facilitation Council (SIFC) avoid granting tax exemptions to foreign investments, particularly the USD 2 billion Chaghi-Gwadar railway project.

Currently, 85% of the virtual talks between the IMF and Pakistan have been completed, focusing on finalizing budgetary details, which are expected to be presented soon in the National Assembly. The proposed budget targets a tax-to-GDP ratio increase to 13% and forecasts non-tax revenue collection of Rs 2,745 billion, expecting economical growth exceeding 4% driven by investment initiatives.

(With inputs from agencies.)