Wed. Jan 8th, 2025

Pakistan achieves targets set by IMF, achieves 10.8% tax-to-GDP ratio

MNP – Pakistan has successfully achieved its key tax targets set by the International Monetary Fund (IMF). The tax-to-GDP ratio has reached 10.8%, surpassing this year’s target of 10.6%.

According to the Adviser to the Finance Minister Khurram Shahzad, this is the highest tax-to-GDP ratio recorded in the past four years. The tax target of Rs6,009 billion for the first half of the fiscal year was also achieved by 94%, he added. 

In the first half of the fiscal year, from July to December, the Federal Board of Revenue (FBR) collected Rs5,624 billion in taxes, reflecting a 26% increase compared to the same period last year. December’s tax collection stood at Rs1,328 billion, achieving 97% of the target of Rs1,373 billion for the month. Last month alone witnessed a 35% increase in tax collection compared to the same month last year. 

Despite a shortfall of Rs385 billion against the initial half-year target, FBR officials noted a significant improvement in revenue performance.

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