ISLAMABAD: The Federal Board of Revenue (FBR) is set to generate Rs250 billion by bringing millions of retailers into the tax net through the Compliance Risk Management (CRM) framework. The move comes as the International Monetary Fund (IMF) reviews Pakistan’s revenue measures amid a significant shortfall of Rs604 billion in the first eight months (July-Feb) of the current fiscal year.

The IMF review mission, currently in Islamabad, will formally begin discussions today (Tuesday) with Finance Minister Mohammad Aurangzeb and his team as part of the first review under the $7 billion Extended Fund Facility (EFF).

To boost revenue, the government is focusing on expanding the Tajir Doost Scheme, strengthening the Compliance Improvement Plan (CIP), and enforcing digital tax monitoring. The FBR has hired experts to develop the CRM framework and plans to use Artificial Intelligence (AI) to audit 3-5% of tax returns. Independent auditors will also be engaged to enhance oversight.

The CRM system is already in place at Large Taxpayer Units (LTUs) in Islamabad, Karachi, and Lahore, with further expansion underway. Additionally, the FBR has signed Memorandums of Understanding (MoUs) with 145 agencies to streamline tax compliance through data integration.

Efforts to digitize invoicing, implement track-and-trace systems, and strengthen anti-tax evasion measures are also underway. To enhance transparency, Pakistan’s tax penalty framework will be reviewed to design a General Anti-Avoidance Rule (GAAR).

Power Sector Reforms: No More Electricity Purchases, Tariff Adjustments Planned

Meanwhile, Federal Minister for Power Sardar Awais Ahmed Khan Leghari assured global development partners, including the World Bank, IMF, ADB, IFC, KfW, UNDP, and AIIB, that negotiations with independent power producers (IPPs) are being conducted fairly, with options for arbitration and forensic audits.

Leghari outlined reforms aimed at cutting electricity costs and improving affordability, including:

• Transitioning from “Take or Pay” to “Take and Pay” contracts
• Eliminating furnace oil-based power plants
• Converting imported coal plants to local coal
• Expanding transmission infrastructure and battery storage
• Privatizing power distribution companies (Discos) and improving governance

He projected that circular debt could be eliminated within 5-8 years, while electricity duties and subsidies will be rationalized. Additionally, net metering policies—currently adding Rs150 billion in costs—are under review.

With Pakistan shifting toward a wholesale electricity market and halting new power purchases, development partners welcomed the reforms and pledged continued support.