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The International Monetary Fund (IMF) has agreed in principle to reduce Pakistan’s tax collection target for the ongoing fiscal year by Rs160 billion. Under the new understanding, the target has been revised to Rs13.971 trillion from the earlier Rs14.131 trillion.
Officials said the final decision on the revised target will be made by the IMF Executive Board. The draft Memorandum of Economic and Financial Policies (MEFP) has already been shared with Pakistan’s economic team, and officials remain optimistic that an agreement will be reached once the IMF is satisfied with the country’s policy commitments.
Finance Ministry officials described the two-week talks with the IMF as “positive and constructive,” noting that most of the fiscal targets were finalized before the IMF delegation concluded its visit. They expressed confidence that the second review of the loan program will be completed smoothly, unlocking a $1.2 billion tranche for Pakistan.
Both sides have agreed to continue virtual talks to finalize the details of the agreement. The Finance Ministry reiterated that discussions with the IMF remain constructive, and the government is hopeful that the outcome will further stabilize the economy while keeping fiscal goals on track.
The IMF’s decision to lower Pakistan’s tax collection target reflects ongoing efforts to align fiscal projections with the country’s economic realities while maintaining reform commitments under the current program.
