Revenue target comes into focus in IMF talks

Published February 12, 2020
Talks with the IMF continued as discussions revolved around the need to further revise the revenue target downward. — Reuters/File
Talks with the IMF continued as discussions revolved around the need to further revise the revenue target downward. — Reuters/File

KARACHI: Talks with the IMF continued as discussions revolved around the need to further revise the revenue target downward. Multiple sources from within the talks confirmed to Dawn that the FBR has proposed up to Rs4.7 trillion as the maximum amount that can be collected this fiscal year whereas the IMF is asking it to aim for Rs4.9tr instead.

The gap implied fresh revenue measures totaling Rs200 billion that would need to be announced in the near future if the authorities fail to convince the fund of their limitations.

The revenue target for the FBR was originally set at Rs5.5tr in the budget for FY2020. It was then revised downward to Rs5.23 billion in the first review that concluded in December 2019. By the end of that year the revenue authority anno­unced a growing shortfall of Rs287 billion in the first six months of the fiscal year.

A few days later the government’s financial advisor paid his first visit to the FBR headquarters in which he reportedly expressed displeasure at this growing shortfall, telling the officers and chief of the revenue authority that continued shortfalls meant either fresh revenue measures to squeeze out more taxes from an already overburdened citizenry and business community, or mounting debt.

Published in Dawn, February 12th, 2020

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...