IMF wants Pakistan to collect more tax, end exemptions

The International Monetary Fund (IMF) has reportedly asked Pakistan to generate tax of over Rs1 trillion by bringing non-filer into the tax net in an effort to unlock a new bailout programme. 

A mission of international lender led by its Chief Nathan Porter has been in talks with a cash-strapped South Asian country in Islamabad since May 15. 

The fund wants Pakistan to extend the amount of tax by adding fresh taxes and removing exemptions in existing taxes.   

According to the sources, Washington-based loan lender believes that the country, which recently completed its ninth bailout programme with the IMF should generate an amount of over Rs1.1 trillion in FY25.

In this regard, the Federal Board of Revenue (FBR) has informed the Ministry of Finance that the IMF has been demanding to bring the agriculture sector into the tax circle, as it shares 24pc in Gross Domestic Production (GDP).

Sources further revealed that the IMF also wants to end tax exemption on pensions. The matter is under discussion with the government.

Sources said that Pakistan is expecting $6 to $8 billion under fresh loan from the IMF for three or more years.