IMF Presses Pakistan for Mini-Budget Amid Tax Revenue Shortfall

Islamabad – The International Monetary Fund (IMF) has urged Pakistan to introduce a mini-budget after the Federal Board of Revenue (FBR) fell short of its tax collection targets, raising concerns about meeting conditions for the second installment of the IMF loan.

Sources indicate the government is now expected to propose a mini-budget worth approximately PKR 500 billion to address the revenue deficit.

The IMF reportedly expressed concern over the FBR’s revenue collection shortfall, viewing a mini-budget as a critical measure to bridge the gap. The failure to meet tax targets has led to internal restructuring within the FBR, with several high-ranking officials being replaced.

In a separate move, the FBR has ruled out any further extensions for filing income tax returns, following two previous deadline extensions. The deadline, which expired on October 31, saw over 5.01 million returns submitted, resulting in Rs125 billion in revenue.

FBR officials reiterated that individuals with monthly earnings of Rs50,000 or more are required to file tax returns. Those who fail to file on time will be categorized as non-filers or late filers, potentially facing penalties.