IMF demands FBR to bridge August revenue shortfall

The International Monetary Fund (IMF) has asked the Federal Board of Revenue (FBR) to bridge the August revenue shortfall, according to the sources.

However, the country’s effort towards a $7 billion deal with the IMF appeared useless as it could not fulfil the pre-condition of the global lenders of rolling over $12 billion in external financing.

According to the sources in the Ministry of Finance, Pakistan has had virtual talks with the Fund on external financing, but the cash-strapped country remained unable to learn about the deadline for approval of the Extended Fund Facility (EFF) from the executive board.

Regarding the tax revenue shortfall, the global lenders directed the tax collection body to address the August gap and submit a plan to deal with the targeted revenue.

The sources privy to the matter said that the FBR’s August revenue showed a shortfall of over Rs100 billion. 

The tax body has managed to collect only Rs790 billion against the Rs898 billion targeted revenue.

It reflected a massive shortfall of Rs108 billion, which is creating complications in the approval of the $7 billion loan tranche by the IMF’s Executive Board.

However, the IMF kept Pakistan out of the board meetings’ schedule, which dims the chances of securing the bailout programme until the middle of September.