FBR Chairman rules out chances of mini-budget

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has ruled out the possibility of introducing a mini-budget midway through the fiscal year, as Pakistan prepares for the next round of review talks with the International Monetary Fund (IMF), ARY News reported on Friday.

Amid media reports suggesting that the government may consider a mini-budget to raise funds for flood rehabilitation—through additional taxes on luxury and imported items—the FBR chairman clarified that no such proposal is under consideration.

“There is no plan to introduce a mini-budget,” Langrial said, dismissing the speculation.

Speaking ahead of the IMF mission’s visit to Pakistan, Langrial noted that while various options have been discussed in the context of flood-related damages, the idea of raising additional revenue through a mini-budget has not been formally proposed.

He also stated that it is premature to comment on any possible revision of the annual tax revenue target.

According to informed sources, the government is expected to request the IMF to reduce its tax collection target for the current fiscal year by Rs300 billion, bringing it down from the current target of Rs14.131 trillion to around Rs13.7 trillion

“Efforts will be made to lower the tax target below Rs14 trillion for the current fiscal year,” the sources said.

Read More: Pakistan to ‘seek’ relief in IMF review talks amid floods

The next round of review talks with the IMF is scheduled to begin on September 25. A successful review will pave the way for the IMF Executive Board’s approval of the next $1 billion tranche under the $7 billion Extended Fund Facility (EFF) program, under which Pakistan has already received over $2 billion in two earlier disbursements.