Pakistan and the International Monetary Fund are close to reaching an agreement on a revised economic and financial framework for the current fiscal year, under which several key fiscal targets are expected to be adjusted.
Under the proposed framework, the tax collection target of the Federal Board of Revenue is likely to be reduced to Rs134.5 trillion by June 2026 to align fiscal goals with prevailing economic conditions.
According to sources, virtual negotiations between IMF officials and Pakistani authorities are continuing in an effort to reach a staff-level agreement under the $7 billion Extended Fund Facility program, with detailed discussions taking place on various economic and financial matters.
Reports indicate that the Federal Board of Revenue may face difficulty in achieving the agreed tax-to-GDP ratio target of 11 percent for the fiscal year 2025–26 as set with the IMF.
During the first eight months of the current fiscal year, tax collections have remained Rs428 billion below the revised target, making it more challenging to meet the overall fiscal objectives.
