The federal government of Pakistan is set to raise its tax collection target by Rs. 2 trillion for the upcoming fiscal year, aiming for a total of Rs. 14.3 trillion—16% higher than the revised target of Rs. 12.3 trillion. This new target would equal nearly 11% of the projected GDP. To meet this goal, the government may introduce Rs. 500 billion in fresh taxes, in addition to the Rs. 1.3 trillion already collected this year. These measures will be reviewed by the IMF during its visit in mid-May, with final decisions expected in the federal budget to be unveiled in early June. Meanwhile, business groups are urging the government to offer tax relief, lower corporate tax rates, and support low-income earners, but experts warn that Pakistan’s financial challenges and commitments to the IMF may limit these options.