The International Monetary Fund (IMF) has introduced new conditions for Pakistan’s Federal Board of Revenue (FBR) to enhance tax compliance and digital invoicing. This move is part of the ongoing $7 billion bailout package, set to expire in September 2027.
According to government sources, the IMF has proposed additional structural benchmarks to monitor the FBR’s progress. These benchmarks include improvements in Compliance Risk Management, the Digital Invoicing Initiative, and the monitoring of production facilities.
The IMF aims for tangible outcomes, requiring the FBR to conduct audits based on compliance risk management. However, the FBR is hesitant, citing legal challenges that may impede guaranteed revenue recoveries.
Previously, the FBR committed to utilizing expanded data sources and risk management tools. Despite these efforts, the organization missed its tax collection targets for the first half of the fiscal year.
The IMF’s new conditions are designed to bind the FBR to measurable tax collection outcomes. This includes ensuring a percentage of sale receipts are digitally monitored in real time, a task that has faced delays.
The FBR has integrated around 27,000 entities with its digital initiative, but only a third are actively sharing invoices online. The organization plans to fully integrate sales systems by June, addressing corporate sector reservations.
As Pakistan and the IMF continue negotiations, the new benchmarks aim to address weaknesses in Pakistan’s economic governance and anti-corruption measures.
Published in SouthAsianDesk, March 18, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
