**IMF “Proposes” Hefty Rs 15 Trillion Tax Target for Pakistan’s Next Budget**
The International Monetary Fund (IMF) has reportedly suggested a tax target exceeding Rs 15 trillion for Pakistan in the upcoming budget, according to sources.
Virtual discussions between the IMF and Pakistan are nearing completion, with 85% of the talks reportedly finalized. These discussions are centered on the details of the next budget, which is anticipated to be presented to the National Assembly shortly.
The new budget aims to elevate the tax-to-GDP ratio to 13% and generate Rs 2,745 billion in non-tax revenue. The government projects economic growth surpassing 4% in the next fiscal year, fueled by increased investment and consumption.
It was earlier reported that the IMF has also advised Pakistan’s Special Investment Facilitation Council (SIFC) to avoid offering tax exemptions to international investment projects, including the $2 billion Chaghi-Gwadar railway track project.
Sources indicate that the IMF delegation argued that tax exemptions for international investments would negatively impact the country’s revenue collection.
The government had sought investment from Gulf countries for the Chaghi-Gwadar railway project, but the IMF has opposed granting tax exemptions to the SIFC for such investments. The SIFC serves as a platform to facilitate investment and the transportation of minerals from Reko Diq to Gwadar via a new railway line.
Pakistani officials briefed the IMF delegation, explaining that the platform facilitates investment and that a new railway line is planned for transporting minerals from Reko Diq to Gwadar.