FBR seeks to lower down tax collection targets as IMF talks underway  

ISLAMABAD: The first round of talks between International Monetary Fund (IMF) and Federal Board of Revenue (FBR) begin on Tuesday as proposals for mini-budget and lowering down of the revenue targets would be mulled over during the meeting, ARY NEWS reported.

According to the FBR sources, the tax-collection body’ officials would convey to the IMF authorities that the country could not achieve the tax target of Rs 5238 billion.

“They will be asked to lower down the tax collection targets for the ongoing fiscal year by Rs 350 billion as the country could not collect taxes beyond Rs 4800 billion,” the sources said adding that during technical talks between the two sides, Member Policy FBR Hamid Ateeq Sarwar along with other officials would brief the fund over these matters.

The meeting would mull over the revenue collected during the last quarter. “Non-taxed income will also come under discussion during the meeting,” they said adding that it might be possible to lower prices of import items as it could improve imports, easing down pressure on the revenue collection shortfall.

On Monday, Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh said that talks have begun with the International Monetary Fund (IMF) officials visiting Pakistan for releasing the third tranche of the US$6 billion bailout package.

It is pertinent to mention here that on January 6, Pakistan had received $452.4 mn as a second tranche of the $6 billion Extended Fund Facility from the International Monetary Fund (IMF).

Talking to media as the two sides begin talks for the tranche that would continue till February 13, the adviser said that the economy has witnessed stability during the last months and the investors are looking towards Pakistan for the business opportunities.