Pakistan has declined the International Monetary Fund’s (IMF) call to introduce a mini-budget to cover a revenue shortfall of Rs386 billion recorded in the first half of the current fiscal year, a private news channel reported, citing sources.Â
Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to address the Rs386 billion deficit through alternative revenue measures rather than imposing new taxes on the common people.Â
Last week, the FBR outlined an aggressive plan to address revenue shortfall, ahead of an IMF review in February. The plan included clearing containers and shipments stuck at ports to increase tax and duty revenues and auctioning confiscated smuggled goods under emergency measures to generate additional income.
The FBR also aims to strengthen its enforcement measures to crack down on tax evaders and improve collection from under-taxed sectors. Priority will be given to resolving tax disputes pending in courts to expedite revenue inflows.Â
The government’s efforts to boost the revenue collection are part of a broader strategy to secure a $1 billion loan tranche from the IMF under its $7 billion Extended Fund Facility (EFF) programme. An IMF mission is set to visit Islamabad in February for the first review of the ongoing programme.
The FBR’s tax collection in the first half of the fiscal year fell short of its target by Rs385 billion. It collected Rs5.623 trillion from July to December FY2024-25, below the assigned target of Rs6.009 trillion for the period.
The tax body collected Rs996 billion in July 2024 against a target of Rs985 billion, Rs782 billion in August against Rs898 billion, Rs1,106 billion in September against Rs1,098 billion, Rs878 billion in October against Rs980 billion, Rs855 billion in November against a target of Rs1.003 trillion and Rs1.326 trillion against a target of Rs1.373 trillion in December.Â
The FBR has set an ambitious tax collection target of Rs960 billion for January, with plans to fully implement the alternative strategy by March.
