Islamabad: The second review meeting of the $7 billion Extended Fund Facility program between Pakistan and the IMF will be held in Islamabad on September 25. On this occasion, detailed discussions will be held on revenue and expenditure targets.
According to sources, the FBR has been given a target of collecting Rs3.83 trillion in taxes by the end of September, however, due to the economic slowdown and the recent devastating floods, the collections are expected to fall by about Rs200 billion.
According to economists, the government will have to discuss this deficit with the IMF and either reduce expenditure or make up the difference through additional tax measures.
The floods have significantly reduced agricultural production, which may further put pressure on GDP growth. Experts say that there is also a possibility of rising inflation, which is why the IMF may emphasize additional revenue measures to meet flood-related expenses.
