The government has come to an understanding with the International Monetary Fund (IMF) and the outcome is a single value regime. The situation faced by the government in the current fiscal year is not just an ailing economy but the revenue collection this year has been the record low since 2010-2011. In such testing times, the government has taken on one of the biggest challenges in light of the agreement with the IMF. The government has recognised that the present arrangement of four provincial and one federal authority looking at goods and services tax has increased the cost of doing business in an exponential manner, which is why they will move to a single tax collection agency.

Moving to a single tax collection agency requires a major revamp in the current system. It also means directing resources once again and the process requires thorough research and great implementation will. The government also plans to develop android apps for the taxpayer’s awareness and facilitation. This is a good step towards digitisation of the processes and this will certainly be an easy task in the list of achievable, however, taxpayer awareness is very important in this regard. The government also has promised to help the Federal Board of Revenue (FBR) identify under-reporting and non-reporting of incomes and sales through the use of data mining. For this particular task, there are reforms required in the FBR alone to ensure that no corrupt practices are involved and the system can have a steady transition to modernity.

Pakistan Tehreek-i-Insaaf (PTI) member, Asad Umer, has resigned in light of the premier’s views on his inability to perform. The new Finance Minister will take some settling in period and has to perform in light of the recent resignation and also the condition of the economy. However, neither he nor can the state be provided with the space to not perform, given the involvement of an international body. The government has taken on a very difficult task and not only requires coordination within own party members but also within the government, both provincial and federal to ensure that the challenges are met and as a result, the economy can be revived. The pace of the government’s implementation ability is neither steady nor consistent at the moment, which can impact the outcome of the deal with IMF. The government has to be mindful of these developments in order to overcome the challenges.