The International Monetary Fund (IMF) has reported a significant shortfall in Pakistan’s tax collection during the first quarter of the current fiscal year, while expressing cautious optimism about the country’s overall economic performance.

According to the IMF’s assessment, tax revenue in the first quarter remained Rs336 billion below the targeted level. The fund noted that the annual tax collection is also expected to fall short of the set target.

However, the IMF said that revenue from the super tax could partially compensate for the shortfall recorded by the Federal Board of Revenue.

The report added that Pakistan is likely to achieve its revised tax return targets, despite the ongoing challenges in revenue mobilisation.

An IMF review mission is expected to visit Pakistan in the last week of February to assess second-quarter performance under the ongoing programme.

The visiting delegation will review fiscal and economic indicators and evaluate progress against agreed benchmarks.

The fund said Pakistan’s economic performance is likely to remain broadly in line with programme standards.