ISLAMABAD – Finance Minister Muhammad Aurangzeb on Wednesday said that Pakistan’s negotiations with the International Monetary Fund (IMF) were progressing “positively,” expressing optimism about the ongoing discussions.
Speaking to reporters in Islamabad, Aurangzeb reiterated the government’s confidence in raising Pakistan’s tax-to-GDP ratio to 11%. He pointed out that a number of tax-related cases remain pending in courts, and their resolution could significantly boost Federal Board of Revenue (FBR) collections.
For fiscal year 2024–25, the FBR fell short of its original target of Rs12.97 trillion, despite imposing Rs1.3 trillion in additional taxes. After two downward revisions, the board managed to collect Rs11.74 trillion—still leaving a shortfall of Rs1.2 trillion. Officials attributed part of the gap to unrealised recoveries worth Rs250 billion tied up in litigation.
Aurangzeb assured that the government was not planning to introduce any new tax measures at this stage. “We are not immediately taking additional tax measures,” he clarified.
The minister also confirmed that the Finance Division, not the FBR, will prepare the upcoming Finance Bill, with the newly established Tax Policy Office (TPO) taking the lead role.
Investor Conference in Washington
Separately, in an interview with Bloomberg, Aurangzeb revealed that Pakistan is preparing to host an investor conference in Washington later this month. He said the government had identified key sectors where foreign investment is being sought, adding: “With respect to the US, you’ve just kick-started that process.”
