Islamabad: The International Monetary Fund (IMF) on Monday released a report in which it cut the tax collection target previously set for the Federal Board of Revenue (FBR) to PKR 5.23 trillion, according to a news source. As per the publication, the international authority took this measure after it projected that Pakistan would not be able to meet the budget deficit target of PKR 3.2 trillion and that significant fiscal slippages would be also be observed in the near future.
The IMF had previously completed the first review of its programme for Pakistan and made the necessary changes to ensure it operated on an optimal level. It modified nearly a dozen existing conditions, including a relaxation in the rules guiding social sector spending, and also added four new conditions.
The IMF has slashed the FBR’s tax collection target from PKR 5.503 trillion to PKR 5.238 trillion, which amounts to a reduction of PKR 265 billion. Representatives from the organisation stated that the original budget deficit target was achievable, however the composition of revenue would have to be changed for the previous target to be met.
