Negotiations between Pakistan and the International Monetary Fund (IMF) over the upcoming budget are ongoing, with the government assuring the IMF of a tougher stance on non-filers.

According to sources, work is underway to eliminate the category of non-filers from the tax system altogether. The new budget will not offer any relief for non-filers; instead, it will introduce stricter measures.

Non-filers will be banned from purchasing vehicles and property, and they will also be restricted from conducting financial transactions.

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During a briefing to the IMF, it was disclosed that the trader-friendly tax scheme failed to meet its targets. However, the increase in withholding tax on unregistered shopkeepers has shown positive results.

There has been a 51% rise in the number of filers among traders and wholesalers.

Sources added that the IMF was informed that analysis of third-party data on tax evaders is ongoing, and efforts are being made to make the tax system more effective.