On Thursday, Pakistan announced that it had settled all disputes with the International Monetary Fund (IMF), clearing the path for the approval of a $7 billion loan later this month. However, the government is also planning stricter tax rules for current taxpayers after backing down from imposing similar regulations on traders.
The government has proposed changes to prevent current tax filers from buying assets if the value of their declared income and cash savings is less than the cost of those assets.
This move follows a review by the new chairman of the Federal Board of Revenue (FBR), who analyzed the income data of the country’s nearly six million tax return filers for 2024. The findings revealed that only about 45,000 people declared an annual income of more than Rs10 million.
“Thank God, all issues have been resolved with the IMF, and the IMF board will finalize these matters this month,” Finance Minister Muhammad Aurangzeb said on Thursday.
His statement ends the uncertainty surrounding the approval of the $7 billion Extended Fund Facility, which had been delayed for two months, pending final board approval.
IMF spokesperson Julie Kozack confirmed that the board is set to meet on September 25 to consider the approval of the three-year loan package.
Government sources revealed that new legislation is being drafted to increase tax collection, as the government is struggling to meet the targets agreed upon with the IMF.
According to tax authorities, most of the nearly six million filers—mainly business individuals, associations, and companies—have underreported their assets and income in their annual filings with the FBR. As a result, the government plans to target these filers to increase revenue.
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