Talks between Pakistan and the International Monetary Fund (IMF) entered their fourth day, with discussions focusing on bringing retailers, property owners, and agricultural income into the tax net.

The government is also considering stricter fiscal measures from April 1, including an increase in direct taxes.

According to sources, the Federal Board of Revenue (FBR) may see a revision in its tax collection target of Rs12.5 trillion.

The IMF is expected to adjust this target based on Pakistan’s economic performance. The government aims to generate a primary budget surplus of Rs1.2 trillion this fiscal year as part of the IMF programme.

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Tighter financial measures on the horizon

The Ministry of Finance has indicated that additional steps will be taken to expand direct taxation.

This includes taxing retailers, property income, and agricultural earnings. Authorities may impose stringent revenue measures in the final quarter of the fiscal year to cover an estimated Rs600 billion fiscal shortfall from the past eight months.

The IMF and Pakistani officials are also discussing strict controls on the Public Sector Development Programme (PSDP), enhanced revenue collection from real estate, and emergency measures to bridge revenue gaps.

Mandatory asset declaration for civil servants

Meanwhile, the government has set a September deadline for civil servants to declare their assets, following IMF recommendations.

A digital portal will be launched to facilitate asset disclosures, with a draft proposal shared with the IMF.

To address revenue shortfalls, the government has ruled out a mini-budget, instead focusing on a potential super tax, expected to generate Rs157 billion.

Additionally, pending tax cases will be expedited with assistance from the Prime Minister’s Office.

Discussions also continue on external financing, tax policy reforms, inflation comparisons with regional economies, and energy tariff adjustments.

The IMF delegation is reviewing reports on labour force surveys, family budget assessments, and living standards. Key negotiations on circular debt in the power and gas sectors are ongoing.

Further deliberations on civil servants’ asset declaration framework will be held today, with the finalised draft set to be presented to the IMF.