Tax-to-GDP Ratio Exceeds Expectations
Pakistan has successfully exceeded the tax-to-GDP ratio target set by the International Monetary Fund (IMF) for the fiscal year 2024-25. According to ARY News, the country achieved a ratio of 10.8%, surpassing the IMF’s target of 10.6%. This progress is seen as a significant milestone, paving the way for Pakistan to secure the second tranche of the IMF loan program.
Record-Breaking Half-Yearly Performance
Finance Adviser Khurram Shehzad described the achievement as Pakistan’s highest half-yearly tax-to-GDP ratio in the past four years. Between July and December, tax collections reached 94% of the targeted Rs6,009 billion, amounting to Rs5,624 billion. This marks a remarkable 26% year-on-year increase in tax revenues, with December alone witnessing a 35% surge.
No Mini-Budget Required
Federal Board of Revenue (FBR) officials reported that the IMF is satisfied with Pakistan’s performance, negating the need for immediate additional tax measures. The annual target of Rs12,970 billion remains within reach, with Rs7,346 billion expected to be collected in the second half of the fiscal year.
Detailed Revenue Breakdown
- Income Tax: Rs2,827 billion
- Sales Tax: Rs2,105 billion
- Customs Duties: Rs617.3 billion
- Federal Excise Duties: Rs346.6 billion
Efficient Refund Processing
Tax refunds totaling Rs70 billion were processed during the first half of the fiscal year, contributing to increased efficiency and transparency in the tax system.
