The government has hinted at introducing a mini-budget during the current fiscal year. In an interview, Minister of State for Finance, Ali Pervaiz Malik, mentioned that if the targets set by the International Monetary Fund (IMF) are not met, a mini-budget may become necessary.
While the government does not prefer this step, Malik stated that to avoid the country’s financial collapse and maintain the IMF framework, tough decisions might be required. He added that international financial institutions are showing more willingness to support Pakistan, and the country’s ratings are expected to improve as it continues the IMF program.
There have been reports that the Federal Board of Revenue (FBR) has already begun preparations for the mini-budget. Due to the challenging economic conditions, the government set a high tax target in the annual budget, with new taxes worth 1,800 billion PKR. However, after missing tax collection targets in July, August, and September, the need for additional measures became apparent.
Sources indicate that a mini-budget worth 1,000 billion PKR is being prepared, and consultations with the IMF have already taken place. However, Prime Minister Shehbaz Sharif has currently rejected the Finance Ministry's proposal for the mini-budget. Despite this, the possibility of introducing it by November remains high
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