ISLAMABAD: The International Monetary Fund (IMF) has urged Pakistan to address its revenue shortfall in the upcoming fiscal quarter, as part of the ongoing discussions to unlock the next $1 billion loan tranche from the $7 billion loan programme.
During talks, the IMF delegation, led by Nathan Porter, told Pakistani authorities that there was no room for revenue shortfalls, emphasizing the need to meet fiscal targets.
Sources revealed that extensive discussions took place between Pakistan and the IMF, covering key economic and financial matters. Officials from the Ministry of Finance and the State Bank of Pakistan (SBP) held prolonged sessions with the IMF team, addressing topics such as Islamic banking reforms, refinance schemes, and development finance transition.
The IMF delegation also urged the operationalization of the Bank Resolution Framework to bolster the banking sector and mitigate financial risks.
According to sources, the external sector review, foreign exchange market trends, and the government’s monetary policy measures were also discussed in detail.
The IMF stressed the importance of timely right-sizing measures to control expenditures, while the Federal Board of Revenue (FBR) was directed to enhance compliance risk management and implement action plans to improve tax collection efficiency.
Efforts to expand the tax net were also reviewed, particularly targeting large retailers in major cities. The IMF urged authorities to recover high-risk tax cases in Islamabad, Karachi, and Lahore, ensuring these recoveries help address the revenue shortfall.
