PM urges authorities to address revenue shortfall, meet IMF targets

[Business Recorder]

PM urges authorities to address revenue shortfall, meet IMF targets

Prime Minister Shehbaz Sharif on Wednesday stressed the tax collection authorities to meet the revenue targets assigned by the International Monetary Fund (IMF).

Addressing the cabinet meeting on Wednesday, the prime minister while lauding the performance of government officials, acknowledged that a “gaping hole” remains between revenue collection and assigned targets.

“Although receipts are much higher than last year, there remains a big gap against the targets we have fixed with the IMF,” said the PM, while directing for stronger enforcement measures.

“We need to bridge this gap, and achieve the targets within the next six months,” he said.

The remarks from the premier come after the Federal Board of Revenue (FBR) collected Rs1,326 billion in December 2024, against the assigned target of Rs1373 billion.

Overall, FBR has collected Rs5,623 billion in six months (July-December) 2024-25 against the assigned target of Rs6,009 billion, which has resulted in a massive shortfall of Rs386 billion.

Pakistan is currently under a $7-billion, 37-month loan programme with the Washington-based lender, which was inked last year in July.

Increasing the tax-to-GDP ratio is among the IMF’s key conditions.

Meanwhile, talking about the economic performance of his team, PM Shehbaz said that the economy has achieved stability and is now positioned for a ’’takeoff“.

“During the five months of the current financial year, remittances have reached approximately $15 billion. If the growth persists, it is projected to hit $35 billion by the end of the financial year, the highest in Pakistan’s history,” he said.

PM Shehbaz shared that the smuggling of sugar to neighbouring Afghanistan has been successfully thwarted. “It is one of the main factors amongst others that has given us the space to export sugar,” he said.

Additionally, oil smuggling has reduced significantly. Similarly, progress is being made on right-sizing, downsizing and e-governance initiatives, he said.

The prime minister lauded the successful launch of ‘Uraan Pakistan’ programme, saying that the initiative would play a pivotal role in Pakistan’s economic stabilization.

“Pakistan’s economic development has to be driven by export-led growth. Apart from this, we have no other option,” he said.

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