Pakistan likely to miss IMF’s tax refund condition

Pakistan is set to miss the IMF condition to refund PKR 75Bn to taxpayers in 1QFY20 despite an incentive by the global lender that it will soften the tough primary budget deficit reduction target if the country performs better in tax refunds. According to the IMF, the 1QFY20 primary budget deficit target is PKR 102Bn, which can be relaxed to an extent if the govt. pays more than PKR 75Bn in tax arrears. The govt. has so far cleared PKR 22Bn of arrears, which are only 30% of the targeted amount.