The International Monetary Fund (IMF) has demanded a mini-budget as the federal government failed to address IMF conditions including achieving tax targets in the current fiscal year.
According to FBR sources, a mini-budget is expected to be released to meet the shortfall in tax collection in the first quarter of the current fiscal year as the global lender rejected FBR’s request for revision of tax targets.
In a virtual meeting with the Federal Board of Revenue (FBR), IMF officials addressed the revenue shortfall promised as one of the conditions for the $7 billion bailout programme, finalised between the IMF and the government of Pakistan.
As per reports, the IMF noted a shortfall of Rs190 billion which could potentially stale the second tranche of the 37-month Extended Fund Facility Arrangement (EFF). IMF advised Pakistan to introduce two to three mini-budgets during the current FY 2024-25.
Reports added that a mini-budget worth Rs500 billion could be announced and as estimated the board would need an additional Rs60 billion to meet its targets. Sources reported that the internal assessments suggest that tax shortfall could reach between Rs350 billion and Rs400 billion by December this year.
On the other hand, FBR denied the media reports of the IMF’s rejection of the revision request on tax targets. Terming the reports false and baseless, the FBR spokesperson denied any meeting with the global lender on the issue.
