Pakistan 'faces' revenue shortfall of Rs385bln from July-Dec

ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan authorities to present a mini-budget as the country recorded a revenue shortfall of Rs385 billion from July to December 2024, ARY News reported on Wednesday, citing sources.

As per details, the IMF has recommended introducing a mini-budget to bridge the gap. However, sources report that the Prime Minister has rejected this proposal, instructing the Federal Board of Revenue (FBR) to address the shortfall through alternative measures.

The FBR has already shared a comprehensive alternative plan with the IMF, aiming to enhance revenue collection without burdening the public with new taxes, the sources said.

According to the plan, immediate clearance of containers and shipments stuck at ports will be prioritized to boost tax and duty revenues. Additionally, confiscated smuggled goods will be auctioned promptly under emergency measures to generate further income.

The sources further say, efforts are also being intensified to improve enforcement capabilities against tax evaders, alongside enhancing tax collection from under-taxed sectors. To expedite the resolution of tax-related disputes, cases pending in courts will be cleared on a priority basis.

Sources within the Federal Board of Revenue (FBR) revealed that these measures are expected to be implemented before the IMF delegation’s arrival in Pakistan. Meanwhile, the FBR faces a daunting task of achieving a tax collection target of Rs960 billion in January.

The alternative plan, aimed at offsetting the revenue shortfall, is expected to be fully executed by March.