Pakistani Government assured International Monetary Fund (IMF) that it will introduce mini-budgets to offset any shortfalls in tax revenues, and increase power tariffs if the Supreme Court strikes down electricity surcharges, reports stated.
Finance Minister Ishaq Dar gave the written assurances in a letter to the IMF on June 12.
According to the Memorandum of Economic and Financial Policies (MEFP), “If tax revenue falls below the level envisaged in the programme, the authorities will implement additional revenue measures, including plans to eliminate tax concessions and exemptions slated for fiscal year 2016-17.”
While addressing a teleconference from Washington on Thursday, the IMF Mission Chief to Pakistan Harald Finger also underlined the need for administrative reforms in the FBR.
“There is a need to continue with reforms in tax administration,” said Finger.