The International Monetary Fund (IMF) has urged Pakistan to bridge its revenue shortfall by relying on the Super Tax, as discussions continue under the ongoing loan programme.
The recommendation comes amid concerns over fiscal gaps and slower-than-expected revenue collection.
Focus on Meeting Fiscal Targets
The IMF has stressed the importance of meeting agreed revenue targets to keep the loan programme on track. According to officials familiar with the discussions, the Fund believes the Super Tax can help generate additional income without introducing broad-based new taxes.
Moreover, the IMF has emphasized timely implementation to avoid further fiscal pressure.
Government’s Response
Pakistani authorities have acknowledged the revenue challenges and assured the IMF that corrective measures are under consideration. The government is reviewing options to improve tax collection while minimizing the impact on ordinary citizens.
At the same time, officials aim to balance revenue needs with economic stability and business confidence.
Impact on Businesses
The Super Tax primarily targets high-income sectors and large corporations, which could face increased tax liabilities if the measure is expanded or extended.
As a result, business groups have urged the government to ensure policy clarity and avoid uncertainty.
IMF Programme Progress
The IMF continues to closely monitor Pakistan’s fiscal performance as part of periodic programme reviews. Any failure to meet revenue benchmarks could affect future disbursements.
Meanwhile, discussions between the two sides remain ongoing to finalise a sustainable fiscal path.
Way Forward
Economists say improving tax compliance and broadening the tax base remain essential for long-term stability. While the Super Tax may provide short-term relief, structural reforms are needed to strengthen public finances.
Overall, the IMF’s recommendation highlights the urgency of addressing Pakistan’s fiscal challenges under the current programme.
Stay with Faiz.tv for the latest updates on Pakistan’s economy, IMF talks, and government fiscal policies.
