The IMF has urged Pakistan’s provinces to impose additional taxes to increase their own-source revenues during the current fiscal year, with the four provinces collectively expected to generate an additional Rs430 billion in tax receipts.

According to official details, the additional tax collection target of Rs430 billion is equivalent to 0.3 per cent of the country’s Gross Domestic Product (GDP).

The provinces will contribute the additional tax revenue in accordance with their respective shares under the National Finance Commission (NFC) Award.

Meanwhile, the federal government is constituting an inter-ministerial committee, headed by the prime minister, to ensure implementation of decisions taken by the National Economic Council (NEC).

The committee, comprising federal and provincial ministers as well as senior government officials, will oversee the implementation of national policies and monitor progress on key initiatives.

Sources said the inter-ministerial committee will also be responsible for strengthening coordination and cooperation between the federation and the provinces and ensuring effective monitoring of national development projects.