Pakistan Hits IMF-Set Tax Milestones for FY 2024-25
Pakistan has reached a critical milestone by meeting the tax targets set by the International Monetary Fund (IMF) for the fiscal year 2024-25. ARY News reported that the country achieved a tax-to-GDP ratio of 10.8%, exceeding the 10.6% target. This development strengthens Pakistan’s financial standing, ensuring eligibility for the second tranche of the IMF loan.
Strong Tax Collection Performance
The Federal Board of Revenue (FBR) reported collecting Rs5,624 billion in taxes from July to December, marking a 26% increase compared to the previous fiscal year. December alone saw a 35% spike in collections. These figures represent 94% of the half-yearly target of Rs6,009 billion.
Future Outlook
The annual tax collection goal is Rs12,970 billion. With Rs7,346 billion projected for the second half of the year, FBR officials are confident of achieving this target without introducing a mini-budget or new tax measures.
Sector-Wise Revenue Contributions
- Income Tax: Rs2,827 billion
- Sales Tax: Rs2,105 billion
- Customs Duties: Rs617.3 billion
- Federal Excise Duties: Rs346.6 billion
IMF Approval
The IMF has expressed satisfaction with Pakistan’s tax progress. This eliminates immediate concerns about fiscal shortfalls and reinforces the country’s commitment to economic reforms.
Efficiency in Refunds
During the first six months, Rs70 billion in tax refunds were processed, reflecting improved administrative efficiency.
