IMF sets Rs 15 trillion tax target for Pakistan

The International Monetary Fund (IMF) has proposed that Pakistan target over 15 trillion rupees in taxes for the upcoming budget. This information comes from reports highlighting ongoing virtual discussions between the IMF and Pakistani officials. Most of the talks have been productive, with a focus on finalizing budget details that will soon be presented to the National Assembly. The new budget is expected to raise the tax-to-GDP ratio to 13 percent. It also aims to generate 2,745 billion rupees in non-tax revenue. The Pakistani government is optimistic about the economy, projecting a growth rate of over 4 percent for the next fiscal year, thanks to increased investment and consumption. However, the IMF has advised Pakistan against providing tax exemptions for international investment projects. This includes the proposed Chaghi-Gwadar railway track project, which is estimated to cost 2 billion USD. The IMF believes that such exemptions could harm the country's ability to generate revenue. Pakistani officials explained that the Special Investment Facilitation Council (SIFC) is working to attract Gulf investment for various projects. This includes a new railway line to help transport minerals from Reko Diq to Gwadar. Discussions with the IMF also cover other important issues such as climate financing and electric vehicle charging stations.