ISLAMABAD: Prime Minister Shehbaz Sharif said on Tuesday that his country would be digitizing its tax collection body, the Federal Board of Revenue, and hire consultants next month for this purpose, Pakistani state media reported, amid a push for economic reforms in the South Asian nation.

Pakistan, which has been facing an economic meltdown, is making efforts to introduce structural reforms under a $3 billion International Monetary Fund (IMF) program that helped it avert a sovereign default last year.

The South Asian country has to meet a primary budget deficit target of Rs401 billion ($1.44 billion), or 0.4 percent of gross domestic product, for the current fiscal year before the government presents its budget in June.

In Dec., the FBR said Pakistan had a “very narrow tax base” of around 5.2 million people in 2022, out of a population of 240 million people and it had planned to add 1.5 million new taxpayers to the existing base during the current fiscal year.

“The FBR will be totally restructured,” Sharif was quoted as saying by the state-run Radio Pakistan broadcaster. “Consultants will be hired next month for complete digitalization of the tax collection body.”

The comments came during the prime minister’s address with attendees at a Tax Excellence Awards ceremony in the federal capital.

Sharif said his government was compelled to enter a new IMF program for the sake of stability, but along with the program, it would focus on fostering growth, creating job opportunities and addressing the issue of inflation. 

“We will have to enhance the tax base,” he added.

Amid negotiations with an IMF team for the final review of the existing $3 billion program last week, an official of the finance ministry told Arab News Pakistan had been lagging on two fronts that were digitization of the taxation and bringing new taxpayers into the net.

“The IMF wants us to continue the economic stabilization and reforms agenda till negotiation of the new loan program,” the official said.

In his remarks at the Tax Excellence Awards ceremony, Finance Minister Muhammad Aurangzeb said the digitization of the FBR was aimed at ensuring transparency and increasing revenue collection.

This would also restore the trust and confidence of the people in the tax collection body, he added.