IMF sets Rs17.1tr federal revenue target for 2026-27

In its staff report on completion of third review of $7bn Extended Fund Facility (EFF) and second review of $1.4bn Resilience and Sustainability Facility (RSF), the fund has projected total federal revenues for FY27 at Rs17.144tr — over Rs2.03tr higher than the current fiscal year, up 13.5pc. The report showed that Pakistan had to commit and deliver three major prior actions to make up for slippages on programme benchmarks before the IMF’s executive board finally approved the disbursement of $1.3bn under both facilities. These included Rs136bn lower grants to the provinces, Rs322bn in recoveries following favourable court decisions relating to super tax, and full pass-on of fuel prices after the government’s initial hesitation following the US-Iran war. This was despite the fact that authorities maintained that, besides those living in absolute poverty and getting social income supports, 40pc of the population was now facing vulnerability. The BISP support would be increased to Rs18,000 in the coming budget, up from Rs14,500 per family at present, the two sides have agreed. Almost matching commitments worth Rs430bn have been made by the four provinces for additional provincial revenue mobilisation next year. This will take total provincial revenues to Rs1.95tr next year, up from Rs1.264tr expected in FY26.