Islamabad, September 26, 2025 — The second review discussions of Pakistan’s ongoing loan program with the International Monetary Fund (IMF) have brought fresh demands from the global lender, with a particular focus on the speedy resolution of pending Federal Board of Revenue (FBR) court cases.
According to sources familiar with the talks, the IMF delegation was briefed in detail by Pakistan’s economic team on the factors behind the missed tax collection targets and the widening revenue shortfall. The FBR informed the delegation that nearly Rs200 billion could be recovered once pending super tax cases are settled in court.
Officials outlined a plan to bridge the revenue gap, combining enforcement actions with the adjudication of these high-stakes cases. They also shared preliminary estimates suggesting that the recent floods had cost the exchequer around Rs60 billion in tax revenue. In light of this, the FBR sought relaxation in tax targets from the IMF, though the delegation did not offer an immediate response.
Insiders caution that if court verdicts do not favor the FBR, the government may be forced to introduce fresh measures worth approximately Rs200 billion to make up for the loss.
The review meetings also touched on the proposed new National Finance Commission (NFC) award, where officials revealed that a reduction of the provincial revenue share from 82 percent, based on population, is under consideration. The IMF delegation was additionally updated on fiscal performance from the previous year during a special Fiscal Development Meeting.
Meanwhile, sources at the Ministry of Finance confirmed that today’s agenda will include detailed discussions on the power sector. Officials remain cautiously optimistic about progress, expressing confidence that the talks will eventually move toward a successful conclusion.
