Pakistani Government representatives requested the International Monetary Fund (IMF) officials consider the option to further reduce tax collection target due to prevailing political instability coupled with tight economic conditions that have adversely affected almost every household. Talks with IMF were held to evaluate the second quarter (October-December) 2019-20 on Monday. Finance Adviser Dr Abdul Hafeez Shaikh initiated the review talks with his counterpart Ernest Rigo, the IMF’s Washington-based mission chief.

In the meeting for second review talks, the government official stated that more than Rs4.7 trillion cannot be collected while the IMF put forth demand that the Federal Board of Revenue (FBR) should still aim the target at Rs5.238 trillion.

According to private media news agency, The IMF has directed Pakistani Government to pursue additional revenue measures without any delay. If case of successful talks and the government manages to present a mini-budget before next board meeting, the IMF may approve third loan tranche of $450 million next month.