Islamabad (Commerce Desk) — Pakistan has assured the International Monetary Fund (IMF) that it will provide further details regarding a statistical discrepancy of Rs853 billion in the financial accounts of the federal and provincial governments.
According to sources, the IMF mission received a briefing from officials regarding the statistical discrepancy in federal and provincial budget accounts, block allocations in the federal budget, agricultural income tax collections and federal revenue targets.
Of the total Rs853 billion discrepancy in the accounts for fiscal year 2025-26, the federal government’s accounts account for Rs448 billion. According to officials, the discrepancy mainly arose due to provincial governments’ investments in treasury papers, withdrawal of funds before the end of June, and differences in recording actual expenditures in July or later.
A statistical discrepancy of Rs266 billion was identified in Punjab’s accounts. Officials said the main reasons were inflows and outflows of funds in commercial accounts and differences in the methods used by the federal and provincial governments to compile their accounts.
According to officials, some funds remain unutilized due to delays in the release of development funds until June. To utilize these funds, cheques are issued before the end of June; however, actual payments are made after June 30.
The Ministry of Finance has assured the IMF that further details regarding the statistical discrepancy will be provided. According to officials, the discrepancy will not have a negative impact on the primary budget surplus reported by the government.
Meanwhile, the IMF also sought details regarding agricultural income tax collections. Last fiscal year, the combined collections by Punjab and Sindh remained slightly above Rs5 billion.
In Sindh, Rs1.10 billion was collected against a target of Rs2 billion in agricultural income tax, while Punjab collected Rs4 billion against a target of Rs10.5 billion.
For the current fiscal year, Punjab has set a target of Rs12.5 billion in agricultural income tax collections. The FBR has provided the Sindh government with data on 44,350 individuals who have declared agricultural income.
Meanwhile, the FBR has linked achievement of the current fiscal year’s tax collection target of Rs15.263 trillion to the situation in the Middle East and its potential impact on the Pakistani economy.
The IMF was informed that the FBR would achieve key performance targets, including digital invoicing and monitoring of production lines, while it also assured the achievement of the Rs7 trillion target set for the first quarter.
According to sources, the FBR did not give an absolute assurance regarding achievement of the full-year target of Rs15.263 trillion and said that its attainment would depend on the regional security situation, particularly developments in the Middle East and their impact on the Pakistani economy.
During the ongoing talks between Pakistan and the IMF, officials also briefed the fund on legislation concerning the declaration of assets by government employees. According to officials, a new Section 15-A has been added to the Civil Servants Act, under which officers from Grade 17 to Grade 22 will be required to declare their assets, with the details to be made available on a website.