Pakistan Likely to ‘Introduce Mini Budget’ as FBR Struggles to Meet Targets 2024

As the Federal Board of Revenue (FBR) struggles to meet its revenue collection targets, Pakistan is likely to introduce a mini-budget to cover the shortfall. The looming budget is expected to include additional taxes and revenue-raising measures, placing further financial burden on citizens amid rising inflation.

Revenue Collection Crisis

The FBR has faced difficulties in achieving its revenue goals for the current fiscal year, with a significant shortfall reported in the first quarter. The board’s inability to meet targets has raised concerns about Pakistan’s financial stability, particularly in light of its ongoing negotiations with the International Monetary Fund (IMF). Failure to meet these targets could jeopardize future funding from the IMF and other international financial institutions.

Additional Taxes and Measures

The mini-budget is expected to introduce a range of new taxes, including increases in excise duties, sales taxes, and income taxes on higher-earning individuals and corporations. These measures aim to plug the revenue gap, but they may also increase financial strain on the public. With inflation already high, the imposition of new taxes could further erode the purchasing power of the average citizen.

IMF Pressure

The decision to introduce a mini-budget comes as part of Pakistan’s ongoing negotiations with the IMF. The global lender has been pushing the government to implement stricter fiscal policies, reduce public debt, and increase tax collection. However, these measures are proving politically unpopular, as they are likely to result in increased financial pressure on already struggling citizens and businesses.