The Federal Board of Revenue (FBR) in Pakistan has provided assurance to the visiting International Monetary Fund (IMF) mission that they will not introduce any new tax amnesty scheme. This assurance comes as discussions are underway for the disbursement of the next $710 million installment.
In early November, an IMF review mission arrived in Pakistan to assess the country's progress in meeting the targets set within a $3 billion program that was approved in July to aid the struggling economy. The IMF's executive board had granted Pakistan a nine-month standby arrangement (SBA) to support economic stabilization.
Upon the IMF board's approval, Pakistan received an initial installment of $1.1 billion. The release of the second $710 million tranche is contingent on the successful completion of the second quarterly review.
During its meeting with the IMF review mission, the FBR presented a report regarding tax performance for the period of July to September. The report included information about revenue targets, refund payments, and tax rebates as outlined in previous discussions with the IMF.
The FBR report noted that the income tax refund target for the July-September period had been met, and it assured the delegation that it would achieve the revenue target of Rs9.415 trillion. Importantly, the FBR stated that no new tax amnesty scheme would be introduced. Additionally, the report highlighted a gradual reduction in income tax refund payments according to the plan, and the FBR did not grant tax exemptions in the first quarter, in line with the terms of the loan program.
