The International Monetary Fund (IMF) has instructed Pakistan to introduce a mini-budget due to the Federal Board of Revenue (FBR) ‘s failure to meet its tax collection targets.
This shortfall has created a significant revenue gap, jeopardizing the second instalment of the IMF’s loan. In response, the IMF has highlighted the need for a mini-budget to rectify this fiscal deficit.
Sources suggest the government plans to unveil a mini-budget worth approximately PKR 500 billion to manage the revenue shortfall.
Moreover, the FBR’s inability to achieve its tax targets has triggered a restructuring within the organization, leading to the replacement of several senior officials.
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Concurrently, the FBR has decided against extending the deadline for filing income tax returns, having already granted two extensions. The final deadline was October 31.
FBR officials reported that over 5.01 million returns have been filed, generating more than Rs125 billion. They emphasized the requirement for individuals earning Rs50,000 monthly to file returns, warning that non-compliance would categorize them as non-filers or late filers.
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Penalties for non-filers include restrictions on international travel, blocked mobile phone SIM cards, and potential disconnections of electricity and gas services.
On September 27, Pakistan received the first tranche of a 37-month Extended Fund Facility from the IMF, totalling US$7 billion, following approval by the IMF Executive Board.
The State Bank of Pakistan (SBP) confirmed receiving SDR 760 million – equivalent to USD 1026.9 million – as this initial tranche from the IMF.
