Pakistan IMF To Finalise Rs2000 Billion Tax Plan

ISLAMABAD: (Web Desk) – Pakistan’s upcoming federal budget for 2026–27 will be prepared in consultation with the International Monetary Fund (IMF), with major tax reforms and revenue targets under discussion, according to official sources.

During ongoing talks between Pakistan and the IMF, officials are reviewing an overall tax framework worth approximately Rs15,300 billion as part of broader fiscal planning.

Sources said the IMF delegation will begin discussions at the federal finance ministry, where meetings will be held with Finance Minister Senator Mohammad Aurangzeb and State Bank of Pakistan Governor Jameel Ahmad.

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The discussions are focused on expanding the tax base, reducing exemptions, and reviewing measures aimed at strengthening revenue collection.

Officials said proposals include the possible imposition of new taxes worth Rs230 billion in the upcoming fiscal year, alongside additional revenue-generation measures expected to yield around Rs700 billion.

Sources also indicated that total tax-related adjustments worth approximately Rs2000 billion are under consideration as part of the broader budget framework.

The meeting will further examine expenditure control strategies and potential reductions in sales tax exemptions as part of fiscal consolidation efforts.

Authorities are also reviewing income tax collection targets for the next fiscal year, including plans to widen the taxpayer base and improve compliance mechanisms.

Officials said the IMF’s involvement is aimed at ensuring macroeconomic stability and strengthening Pakistan’s revenue system under ongoing economic reform commitments.