FBR Confirms No Mini-Budget for Flood Relief

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial ruled out any plan for a mini-budget this fiscal year. He dismissed media reports suggesting the government might impose extra taxes on luxury and imported goods for flood relief. Langrial clarified that no proposal for a mini-budget is currently under consideration. Instead, the government is focusing on other options to manage flood-related damages. He emphasized that discussions have taken place, but the idea remains informal.

Langrial made these remarks just before the International Monetary Fund (IMF) mission’s visit to Pakistan. He said it is too early to comment on any revision of the annual tax revenue target. The government is expected to request the IMF to lower the tax collection target. Sources revealed the tax target might be reduced by Rs300 billion. This would bring the target down from Rs14.131 trillion to around Rs13.7 trillion.

The expected talks with the IMF are scheduled for September 25. A successful review would allow the IMF Executive Board to approve the next $1 billion tranche. This is part of the $7 billion Extended Fund Facility (EFF) program. Pakistan has already received over $2 billion in earlier disbursements under this program.

The government’s focus remains on securing funds to support flood rehabilitation. Despite media speculation, no new tax measures will be introduced immediately. Instead, the government is trying to negotiate relaxed tax targets with the IMF. This would ease pressure on the economy while addressing urgent flood-related needs.

In conclusion, the FBR chairman reaffirmed the government’s commitment to fiscal stability. He stressed that the mini-budget rumors are unfounded. Pakistan aims to work closely with the IMF to maintain its financial program. The upcoming talks will be crucial for the country’s economic future amid ongoing challenges.