The IMF highlights Pakistans tax shortfall and foreign loan delays as key challenges in implementing the USD 7 billion loan package.

The IMF has raised concerns over Pakistan's ability to meet the conditions of a USD 7 billion loan package, citing tax collection shortfalls and delays in securing foreign loans. Discrepancies in Punjab's new agriculture income tax legislation and violations of the National Fiscal Pact by Punjab and Sindh have also been flagged as major concerns.

The global lender said that the country’s tax shortfall and delay in materialising foreign loans are the primary obstacles to implementing the loan, along with other factors

The IMF has raised concerns about Pakistan's tax shortfall, delayed foreign loans, and inconsistencies in implementing the USD 7 billion loan package. The lender also flagged issues with Punjab's agriculture income tax law and the National Fiscal Pact.

Pakistan's tax shortfall and a delay in materialising foreign loans have emerged as the main concerns of the International Monetary Fund (IMF) while Punjab's new agriculture income tax law is still not fully aligned with the federal legislation and in deviation to the National Fiscal Pact.