By Staff Reporter
ISLAMABAD: The International Monetary Fund (IMF) is intensifying pressure on Pakistan to tackle a Rs7 trillion tax shortfall and judicial inefficiencies, critical steps to shore up its shaky economy.
An IMF team met with the Federal Board of Revenue (FBR) and Supreme Court Bar Association (SCBA) in Islamabad on Monday, zeroing in on governance reforms tied to fiscal stability and investment appeal.
The tax transformation plan, greenlit last year by the Prime Minister Shehbaz Sharif, aims to close a gaping revenue hole through digital tools and tougher enforcement.
The FBR briefed IMF technical experts on efforts to convert tax offices into model units and crack down on smuggling. A big target: slashing the 25% cash-in-circulation rate—far above Bangladesh and India’s 14% or Malaysia’s 7%. New rules will block tax credits on sales to unregistered firms, paired with digital invoicing to catch evaders.
“We’ve started briefings with the IMF team,” Dawn newspaper quoted an FBR official as saying. “Follow-ups are set through Wednesday, culminating in a chairman-level meeting. The goal is to lift tax collection and governance in 2025.”
Across town, the IMF pressed the SCBA on judicial bottlenecks hobbling contract enforcement and property rights—make-or-break issues for foreign investors.
SCBA President Mian Mohammad Rauf Atta touted upgrades like e-filing, video links in the Supreme Court, and a new case management system, driven by the Chief Justice. The 26th Constitutional Amendment, freshly passed, aims to bolster judicial independence.
“Efficiency is non-negotiable for an independent judiciary,” Atta said. Plans also include specialized tax tribunals, more expert judges, and grassroots dispute resolution. Special courts are in the works to speed up contract disputes, while anti-encroachment laws strengthen property rights under the Constitution.
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