Pak's tax shortfall, delay in finalising loans concerns in $7 bn loan implementation: IMF

In addition, the IMF had concerns about the delay in the privatisation of the power distribution companies

The IMF has flagged Pakistan's tax shortfall and a delay in materialising foreign loans, among other issues, as challenges in implementing the $7 billion loan package.

At the end of the International Monetary Fund (IMF) mission, which for five days held in-depth meetings with Pakistan officials about the implementation of conditions linked with the loan, the global lender also expressed concerns about Punjab's new agriculture income tax law which is still not fully aligned with the federal legislation and deviated from the National Fiscal Pact, the Express Tribune reported.

A source said the IMF mission flagged two major concerns on Friday: the Federal Board of Revenue (FBR)'s underperformance and a delay in finalising the loans to fill the $2.5 billion gap.