The IMF expresses concern over the Federal Board of Revenue’s track and trace system’s shortcomings. The agency has requested a detailed implementation report and set a deadline for its adoption across five major sectors. Pakistan is in talks with the IMF for a bailout package, with both parties agreeing to accelerate reforms to expand the tax net and prevent evasion.
The International Monetary Fund (IMF) is ‘concerned’ over shortcomings in the implementation of the track and trace system by the Federal Board of Revenue (FBR), ARY News reported, citing sources.
These concerns were shared by the Washington-based lending agency during its current discussions with FBR authorities on tax structure and administration.
Sources said the IMF has asked for a detailed implementation report on the track and trace system and set a deadline for its complete adoption across five major sectors in the country.
The lender has urged for the track and trace system to be fully operational by next fiscal year. While discussions are still at the policy level, both parties have agreed to accelerate reforms to expand the tax net and prevent tax evasion.
Pakistan is seeking a $6 to $8 billion bailout package from the international lender for three to four years to address its financial woes.
In its staff report earlier this week, the IMF acknowledged Pakistan’s economic improvement, however, it warned that the outlook remains challenging, with downside risks remaining exceptionally high.
The country narrowly averted default last summer, and its $350 billion economy has stabilised after the completion of the last IMF programme, with inflation coming down to around 17% in April from a record high of 38% last May.
In recent news, the IMF has expressed its concerns regarding the limitations of the Federal Board of Revenue’s (FBR) Track and Trace system. This development highlights the pressing need for a comprehensive assessment of the efficacy and efficiency of the existing mechanisms in place.
The IMF’s reservations serve as a catalyst for a thorough examination of the constraints undermining the potential of the FBR’s tracking and tracing efforts. It is imperative for stakeholders to closely evaluate the obstacles that impede the system’s optimal functioning.
In light of this, stakeholders should proactively engage in a constructive dialogue to address the identified shortcomings and seek viable solutions. By fostering effective collaboration and transparency, the FBR can work towards enhancing the Track and Trace system, thereby promoting a more robust taxation regime.
This insight from the IMF serves as a critical reminder of the importance of continuous evaluation and enhancement of vital economic systems. It underscores the urgent need for proactive measures to address the limitations identified, and to ensure that the FBR’s Track and Trace system can fulfill its intended role in bolstering revenue collection and compliance.
As the landscape of global economic governance continues to evolve, the FBR and other relevant authorities must remain responsive and adaptive to the recommendations put forth by global financial institutions. By doing so, they can establish a more resilient and effective track and trace system that aligns with international best practices.
Source: ARY NEWS
The IMF has expressed concerns over the FBR’s track and trace system implementation, urging a detailed report and full operational adoption across major sectors by the next fiscal year. Pakistan is in talks with the IMF for a bailout package, with the lender acknowledging economic improvement but warning of remaining challenges and high risks. The country’s economy has stabilized after the last IMF program, with inflation decreasing to around 17% in April.
Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Khabristan.pk for more information visit privacy policy
Leave a Comment