IMF Conditioned Tax relief with with Government expenditures

The IMF said that if the government of Pakistan wants to provide relief to the masses, then it will have to adjust its expenditure. The government of Pakistan is looking for alternative measures to provide relief to the masses regarding taxes, especially salary classes, who are affected the most due to high tax rates. Therefore, the government of Pakistan is looking for alternative ways and best practices to give relief to the masses. Another expected relief from the government is property taxes, and it is expected that the government will be allowed by the IMF to reduce the property taxes on the sale and purchase of properties. 

However, the IMF has now conditioned any tax relief on the government's expenditure, as the government may now be in a catch-22 phase. As the government has given too many incentives to the FBR, however, they are still facing shortfall after another shortfall. Even though the government of Pakistan has given additional salaries to the government-selected good-performance employee categories, the government of Pakistan is still facing a shortfall in tax collection. FTO also complained that there are too many complaints from the taxpayers, and many complaints are subject to unnecessary notices and harassment claims. 

It is expected that the government of Pakistan should go back to the era of 2022, where at least there was no such spending on the FBR, and it was quite normal for the FBR to achieve such targets. Spending on FBR is a wise decision. However, the government of Pakistan also needs to audit results as well to see if their spending is being constructive or not. Additionally, it is expected that the government will lower its expenditure to accommodate low taxes on salary classes in FY 26.