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IMF Demands Spending Cuts or Additional Taxes of PKR 189 Billion

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As high-level negotiations began under Finance Minister’s leadership, Pakistan informed the International Monetary Fund (IMF) on Monday that PKR 11 billion had been collected from retailers, wholesalers, and distributors during the first quarter of the current fiscal year.

However, the Trader Dost Scheme (TDS) fell short of expectations, generating only PKR 1.7 million against a target of PKR 10 billion for the quarter, according to the latest available data.

In response, the IMF has proposed two options: either present a mini-budget to cover the Federal Board of Revenue’s (FBR) PKR 189 billion revenue shortfall for the first four months or devise a viable plan to reduce unrestricted expenditures.

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