Revenue Shortfall: IMF Urges Government for “Do More” Actions

Islamabad: During the first four months of the current fiscal year, the Federal Board of Revenue (FBR) has encountered a significant revenue shortfall, prompting the International Monetary Fund (IMF) to demand additional measures from the government to boost revenue. The IMF has also rejected the FBR’s request to revise and lower its tax targets.
According to sources from the FBR, during a recent virtual meeting with the IMF, the organization emphasized the need for further revenue initiatives to compensate for the shortfall resulting from missed tax targets.
The sources indicated that failure to address the revenue shortfall could lead to difficulties in disbursing the second tranche of the loan. They noted that estimates for future shortfalls are being assessed, and the government may need to implement additional revenue measures in the coming months.