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IMF Projects Rs. 30 billion Collection in Gas Infrastructure Development Cess in FY24

The International Monetary Fund (IMF) has projected Rs. 30 billion in revenue collection from Gas Infrastructure Development Cess (GIDC) against the budgeted estimates of Rs. 40 billion during the current fiscal year 2023-24 (FY24).

Sources told ProPakistani that the Pakistani side assured the IMF during the recently concluded review talks that the government may collect Rs. 30 billion GIDC due to ongoing legal issues. Meanwhile, the IMF has reportedly also projected Rs. 35 billion collection from GIDC in the next fiscal year 2024-2025 (FY25).

According to the fiscal operation of the first quarter of the current year, the government has collected  Rs. 378 million on account of GIDC.

Sources said that Pakistan and IMF have also agreed to slightly increase tax revenue to Rs. 11.296 trillion from Rs. 11.261 trillion in the ongoing fiscal year while the IMF has also projected Rs. 13.177 trillion tax revenue in FY25.

The FBR revenue target will remain at Rs. 9.4 trillion in FY24 while the IMF has reportedly projected Rs. 10.9 trillion FBR revenue in FY25. The FBR team, during the talks, also agreed to enhance the direct tax share in revenue to Rs. 4.230 trillion from Rs. 3.884 trillion during the current fiscal year.

On the other hand, the IMF has projected a Rs. 566 billion collection from the Federal Excise Duty (FED) against the budgetary estimates of Rs. 600 billion during the current year.

Sources further said that Pakistan and the IMF mission team also agreed to project Rs. 3.411 trillion in sales tax against the budgetary estimates of Rs. 3.607 trillion FY24. The lender during recent talks also projected Rs. 1.207 trillion Customs duty against the budgetary estimates of Rs. 1.324 trillion during FY24.

Sources said that the IMF has also projected a Rs. 918 billion Petroleum Development Levy against the budgetary estimates of Rs. 869 billion.

It is pertinent to note that the government cannot impose PDL on petroleum products without the approval of Parliament. The government on the directions of IMF imposed Rs. 60 per litre PDL on petroleum products and collected Rs. 222 billion from July to September 2023-24.

Sources said that the nontax revenue has been projected at Rs. 2.019 trillion against the budgetary target of Rs. 2.116 trillion in FY24. Out of Rs. 2.019 trillion non-tax revenue, the federal share has also been projected Rs. 1.811 trillion against the budgetary estimates of Rs. 1.908 trillion.

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