IMF Urges Pakistan for Mini-Budget Amid Tax Shortfall Concerns

The IMF has advised Pakistan to adopt a mini-budget after the country's Federal Board of Revenue missed tax targets. This failure raises issues about securing further loan installments. Significant personnel changes are underway at the FBR, while taxpayers face penalties if they fail to meet obligations.

The International Monetary Fund (IMF) has urged Pakistan to implement a mini-budget after the Federal Board of Revenue (FBR) failed to meet its tax collection targets, according to a report by ARY News citing anonymous sources.

The IMF views the mini-budget as essential to bridging the revenue shortfall and ensuring the country can secure further installments of a critical loan. A mini-budget worth approximately PKR 500 billion is anticipated to address the gap.

Amidst these financial challenges, the FBR has undergone significant personnel changes, with senior officials being replaced, as per ARY News. Meanwhile, the FBR confirmed the tax return deadline will not be extended further.

Officials reported that over 5.01 million income tax returns have already been filed, generating more than Rs 125 billion. Individuals earning over Rs 50,000 monthly are required to file returns or face penalties, such as travel restrictions, mobile SIM card blocks, and utility disconnections.

In September, Pakistan received an initial loan installment of USD 1.03 billion from the IMF as part of a 37-month Extended Fund Facility totaling USD 7 billion. The State Bank of Pakistan confirmed the receipt of SDR 760 million as part of this tranche.

(With inputs from agencies.)