ISLAMABAD: Pakistan has successfully met the primary tax targets outlined by the International Monetary Fund (IMF), on Friday.

The country achieved a tax-to-GDP ratio of 10.8%, surpassing the IMF’s target of 10.6% for the current fiscal year, a development that paves the way for Islamabad to secure the second tranche of the loan program.

Finance Adviser Khurram Shehzad emphasized that this achievement marks the highest half-yearly tax-to-GDP ratio in four years. He noted that tax collection for the first half of the fiscal year amounted to 94% of the targeted Rs6,009 billion.

Federal Board of Revenue (FBR) officials confirmed that the IMF has expressed satisfaction with the progress, negating the immediate need for additional tax measures to meet the annual targets. Between July and December, the government collected Rs5,624 billion in taxes, reflecting a 26% year-on-year increase and a significant 35% rise in December alone.

Despite a shortfall of Rs385 billion in the half-yearly target, officials noted a marked improvement in tax revenues.

The annual tax collection target of Rs12,970 billion remains achievable without introducing a mini-budget, as the FBR projects Rs7,346 billion in collections during the second half of the fiscal year.

Additionally, Rs70 billion in tax refunds were issued during the first six months.

The tax breakdown for July-December includes Rs2,827 billion from income tax, Rs617.3 billion from customs duties, Rs346.6 billion from federal excise duties, and Rs2,105 billion from sales tax, according to FBR data.