Provinces Directed to Raise Rs400 Billion More for IMF Targets
The federal government has directed provincial administrations to generate an additional Rs400 billion in revenue to help Pakistan meet its fiscal consolidation targets under the International Monetary Fund programme, according to sources familiar with the matter.
The demand reflects mounting pressure on Islamabad to demonstrate compliance with IMF benchmarks ahead of the next programme review. The provinces are expected to mobilise additional resources through a combination of improved tax collection, rationalisation of expenditure, and increased transfers to the centre's consolidated fund.
The directive comes at a time when provincial governments are already managing tight development budgets and competing fiscal pressures. Critics argue that placing additional revenue burdens on the provinces risks crowding out social sector spending at a critical juncture for public services.
The IMF has consistently emphasised the need for structural improvements in provincial finances as part of the Extended Fund Facility. Pakistan's compliance with fiscal targets at both federal and provincial levels remains a key condition for continued disbursements under the programme.
The development signals that the centre views provincial revenue mobilisation as a critical lever in meeting the overall primary surplus targets demanded by the Fund, and is prepared to apply significant administrative pressure to achieve them.
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