Key points
- Three out of five major fiscal conditions were met
- FBR could not meet its targets
- The board was asked to collect a total revenue of Rs9.17tr
- 7 billion was to be collected from retailers
ISLAMABAD: The International Monetary Fund (IMF)’s $7 billion bailout package for Pakistan remained on track during the first nine months of the ongoing fiscal year, the fiscal operations summary released by the Ministry of Finance revealed on Wednesday.
Pakistan’s federal and provincial governments met three out of five major fiscal conditions set by the global lending body.
However, the Federal Board of Revenue (FBR) reportedly could not meet its targets.
Total revenue
The board was asked to collect a total revenue of Rs9.17 trillion and Rs36.7 billion from retailers under the Tajir Dost scheme during July-March period of this fiscal year.
The IMF has set multiple fiscal conditions, whose successful completion has so far helped smooth the continuation of the programme despite initial setbacks, according to a report published by The Express Tribune.
Despite achieving critical revenue targets, the federal government’s net revenues were still Rs394 billion less than its needs for just two heads: interest payments and defence spending, according to the Finance Ministry.
Primary budget surplus
The fiscal operations’ summary showed that Pakistan met the IMF targets for a primary budget surplus by the federal government, as well as net revenue collection and cash surplus targets by the four provinces.
Against a primary surplus target of Rs2.7 trillion, the federal government reported a surplus of Rs3.5 trillion, or 2.8 per cent of gross domestic product (GDP). This higher surplus was primarily due to fully booking the annual central bank profit in the first quarter, with the entire estimated profit of Rs2.5 trillion already accounted for.
