IMF 'wants' Pakistan to meet revenue shortfall in next quarter

ISLAMABAD: The International Monetary Fund (IMF) has ‘asked’ Pakistan to achieve revenue shortfall in the next fiscal quarter, ARY News reported on Wednesday, citing sources.

“There is no room for revenue shortfall,” IMF delegation led by Nathan Porter reportedly told Pakistan during the talks to unlock $1 billion loan tranche of $7bln loan programme.

Sources revealed that during the talks Pakistan and the International Monetary Fund (IMF) held extensive discussions on key economic and financial matters.

During prolonged sessions, officials from the Ministry of Finance and State Bank of Pakistan (SBP) engaged with the IMF delegation on various subjects, including Islamic banking reforms, refinance schemes, and the development finance transition.

The IMF delegation urged the operationalization of the Bank Resolution Framework to strengthen the banking sector and reduce financial risks.

Discussions also covered the external sector review and foreign exchange market trends, the sources added.

The government briefed the IMF on monetary policy measures, while the IMF stressed the need for timely right-sizing measures to curb expenditures.

The sources further said that the Federal Board of Revenue (FBR) was asked to enhance compliance risk management and implement improvement plans for better tax collection.

The delegation was also briefed on efforts to expand the tax net, particularly targeting large retailers in major cities. The IMF directed authorities to recover high-risk cases in Islamabad, Karachi, and Lahore, ensuring these recoveries contribute to reducing the revenue shortfall.

Further negotiations are expected as both sides work towards finalizing Pakistan’s economic roadmap for the coming months.