The International Monetary Fund’s (IMF) delegation started their review of the $6 billion Extended Fund Facility (EFF) on Monday 28th of October 2019 and discussed data relating to revenue collection, its breakup and reasons for the collection shortfall. The delegation also discussed the lower than expected tax returns through the online tax return system. The IMF delegation also raised questions regarding the financial coordination between the provinces.
The FBR officials briefed the delegation that the tax returns delay was being caused by some glitches in the tax return software and the matter has now been taken care of. The FBR further told the delegation that the forms related to tax returns, containing the glitches, had to be replaced and some provinces have so far not approved the replacement of those forms. FBR officials ensured the delegation that the matter would be solved soon.
The delegation would review all the economic sectors until this weekend and then the delegation would start policy level talks with Finance Minister Dr. Abdul Hafeez Sheikh. The IMF team has so far reviewed the first-quarter data (July-September) relating to revenue collection and officials said that the IMF officials did raise questions regarding the Rs113 billion shortfall in revenue collection.