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Pakistan Reaffirms IMF Targets, Rules Out New Taxes as Review Progresses

The finance minister points to court recoveries plus a tax policy shift to the Finance Division as the alternative to a mini-budget.

Overview

  • Talks with the IMF are described as progressing positively as officials pursue the second EFF review and the first RSF review.
  • The government reiterates the 11% tax-to-GDP goal for this fiscal year and says no additional taxes or mini-budget are under consideration.
  • FBR falls short of collection goals, with about Rs1.2 trillion missed last year and Rs198 billion in the July–September quarter, prompting a push to unlock revenues tied up in litigation.
  • Preparation of the next Finance Bill will move to a Tax Policy Office/Board under the Finance Division, leaving the FBR to focus on collection.
  • Pakistan reports repaying a $500 million Eurobond in September, plans a Panda bond before year-end, says the April 2026 $1.3 billion Eurobond is manageable, and tells the IMF flood losses total Rs371 billion with relief to be funded from the development budget rather than UN aid.