The International Monetary Fund (IMF) has expressed strong dissatisfaction with the Federal Board of Revenue’s (FBR) continued failure to meet tax collection targets.
Sources said the visiting IMF team held a lengthy technical meeting with FBR officials on Thursday, during which it criticized the authority for failing to achieve the revised tax collection target for the last fiscal year.
The IMF also raised alarm over the FBR's projected shortfall for the first quarter of the current fiscal year 2025-26. According to sources, the deficit during this period could exceed PKR 100 billion.
Particular concern was voiced over the FBR's inability to bring retailers into the tax net, with the revenue gap from the retail sector alone estimated at nearly PKR 310 billion.
The Fund further flagged two major issues in the property sector: persistent under-declaration of property values in purchase and sale transactions, and misuse of the “file system,” which was originally designed to facilitate real estate dealings but has instead been exploited to legitimize black money.
Citing its lack of transparency and widespread abuse, the IMF has recommended abolishing the file system altogether.
The Fund also criticized the FBR’s failure to implement meaningful structural reforms, urging stronger enforcement measures, including mandatory declaration of property transactions by both buyers and sellers.
In addition, the IMF advised the government to introduce credible valuation mechanisms to prevent undervaluation of properties and ensure proper taxation.
Meanwhile, sources confirmed that the IMF team has postponed its scheduled meetings with Finance Division officials until Monday due to the unavailability of Finance Minister Senator Muhammad Aurangzeb.
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