IMF chief hopes Pakistan’s economic situation to improve.
ISLAMABAD (Web Desk) – Finance Minister Ishaq Dar on Tuesday revealed that the Federal Board of Revenue (FBR) had so far collected an amount of Rs7 trillion – the highest in Pakistan’s history – during the current fiscal year (FY23).
Dar, in a tweet, said the figures were updated till June 26 and the overall numbers would increase during the remaining four days.
Earlier, the government had set a revenue collection of Rs7.64tr for the year, which means the FBR is still short of the achieving the goal by Rs0.64tr – or Rs640 billion.
That’s why it was feared that Pakistan might not be able to meet the annual tax collection target for the ongoing fiscal year as there was a gap of Rs1,446bn that must be covered by the June end. Tax collection during the July-May period of the year 2023-24 clocked in at Rs6.194tr.
And amid the low tax-to-GDP ratio and the IMF’s persistent demand amid a widening budget deficit, the government is eyeing at over Rs9tr in revenue collection for the next financial year of 2023-24.
Earlier,
Prime Minister Shehbaz Sharif held a telephonic conversation on Tuesday morning with IMF Managing Director Kristalina Georgieva.
The conversation centered around matters related to the IMF program.
The prime minister reiterated his determination to achieve the goals of improving the economic situation of the country through joint efforts.
During the telephonic conversation, Ms Georgieva said the IMF wants improved economic situation for Pakistan.
She appreciated Prime Minister Sharif’s leadership qualities. She also acknowledged the efforts of Finance Minister Ishaq Dar and his team to finalize the loan program with the IMF.
The PM hoped that understanding on the points related to the IMF program would take the form of an IMF decision in the next couple of days.
Meanwhile, consultations on the draft Memorandum for Economic and Financial Policy between the two parties are ongoing to unlock the staff-level agreement. The government is hopeful for the SLA soon. The IMF will soon respond to the draft memorandum.
The Ministry of Finance said that in the recent meeting of the prime minister and the IMF MD, the program was agreed upon as Pakistan requested IMF for a relaxation of external financing of $6 billion.
