Islamabad: The International Monetary Fund (IMF) has asked the federal government to set a tax collection target of PKR 5.4 trillion for the upcoming financial year (FY2019-20), a news source reported.
Finance Minister Asad Umar said on Monday that talks with the international agency for a multi-billion dollar bailout package were in their final stages.
In order to secure the bailout package, Pakistan has to agree to certain conditions detailed by the IMF, which is set to finalise its Medium Term Economic Framework (MTEF 2019-2023) targets this month.
However, certain officials are uncertain as to whether the government will be able to meet its revenue target of PKR 5.4 trillion. This figure shows a 13% increase from the current tax collection target, which stands at PKR 4 trillion.
A revenue target of PKR 4 trillion forms 10.6% of the country’s gross domestic product (GDP). A 13% increase means that the Federal Board of Revenue (FBR) has to collect additional revenue worth PKR 1.45 trillion.
