ISLAMABAD – The International Monetary Fund (IMF) has issued a warning to the Federal Board of Revenue (FBR), cautioning that if it fails to meet the tax collection target for the first quarter of the fiscal year—falling short by a margin of Rs 60 billion—the government may be forced to implement an emergency financial plan, possibly leading to a mini-budget.
The FBR, under its new Chairman Rashid Mahmood Langrial, faces the major challenge of meeting the tax collection target set for the first three months of the current fiscal year, spanning from July to September.
Failure to meet the Rs 2,652 billion target could trigger the emergency measures set forth by the IMF.
Following Langrial’s recent appointment, the FBR has seen significant changes, including the restructuring of its leadership team.
Dr. Hamid Atiq Sarwar, a BS-21 officer from the Inland Revenue Service (IRS) who has been awarded the prestigious Sitara-i-Imtiaz, has been appointed as Member IR Policy.
Dr. Sarwar recently returned from deputation to assume this key role. Additional changes within the FBR are expected in the near future.
In one such move, Amna Faiz Bhatti (BS-20), formerly Member IR Policy, has been reassigned as Commissioner IR (Appeals-I) Lahore.
The senior government sources said that the contingency plan communicated by the IMF highlights the looming threat of a mini-budget if the FBR failed to meet its tax collection goals within the specified timeframe.
The IMF has set strict fiscal targets as part of its agreement with Pakistan including a requirement for the FBR to collect Rs2,652 billion in taxes by the end of the first quarter.
The government’s ability to meet this target will be tough in determining the country’s fiscal stability in the upcoming months.
