Pakistan aims to cover PKR 605 billion revenue shortfall by expediting tax cases

Pakistan has devised a plan to address a revenue shortfall of PKR 605 billion by expediting tax cases in courts, the International Monetary Fund (IMF) team is told.

Prime Minister has assured full cooperation in resolving pending tax cases, while the Chief Justice of the Supreme Court has approved an early hearing request.

IMF has been briefed on the plan, which includes resolving tax cases to cover the shortfall. The IMF has advised Pakistan to address its revenue shortfall within the next quarter.

An important hearing on the super tax is scheduled in the Supreme Court on March 10, with the Federal Board of Revenue (FBR) potentially obtaining PKR 157 billion.

Additionally, PKR 23 billion has already been secured under Section 99D of the windfall profit tax, and PKR 72 billion has been obtained from banks on the advance deposit ratio.

Moreover, a deadline of September has been set for government officials to declare their assets, with a briefing given on the amendment to the Civil Servants Asset Declaration Act.

A digital portal will be launched to declare assets as per the IMF's demand, and the prepared draft will be submitted to the IMF.

Negotiations are ongoing regarding the operationalization plan of the External Financing and Tax Policy Unit, according to sources.

Discussions on inflation, regional comparisons, and national accounts are also underway, with reports on the labor force survey, family budget survey, and living standards being reviewed. Important negotiations with the IMF delegation have also been held on electricity tariffs, gas tariffs, and circular debt.

During the first eight months of the fiscal year 2024-25 (July-February), Pakistan's tax shortfall has expanded to PKR 606 billion.

This widening gap occurred even though the Federal Board of Revenue (FBR) achieved an impressive 28% growth in receipts, falling short of the revenue collection target mandated by the IMF.