Pakistan has started sharing key financial data with the International Monetary Fund (IMF) as technical talks continue to finalize the upcoming federal budget, with more than Rs400 billion in new tax measures under consideration.

Sources said Deputy Prime Minister Ishaq Dar has been given a major role in the budget-making process. A special committee headed by him will finalize tax proposals and economic recommendations before the budget announcement.

During the negotiations, the IMF reportedly expressed serious concerns over a tax shortfall of Rs683 billion and urged Pakistan to speed up the collection of agricultural income tax. Under the proposed plan, all four provinces will fully implement agricultural income tax in the next fiscal year.

Officials briefing the IMF mission admitted that the government may fail to achieve its revised annual tax target of Rs13989 billion for the current fiscal year. The economic growth target of 4.2 percent is also unlikely to be achieved, prompting suggestions for another review of annual economic goals and revenue estimates.

The IMF further asked the government to pass on the burden of global oil prices to consumers. Sources revealed that over Rs1330 billion has already been collected from consumers through petroleum levy, against the annual target of Rs1468 billion.

To reduce the fiscal deficit, the IMF stressed strict financial discipline and called for higher spending on health, education, infrastructure and social protection. The lender also demanded that Pakistan spend at least 3 percent of GDP on health and education while ensuring there is no delay in implementing the National Fiscal Pact.