IMF Talks: FBR Rules Out Mini Budget to Cover Rs. 601 Billion Tax Shortfall

The Federal Board of Revenue (FBR) has informed the International Monetary Fund (IMF) that there will be no mini-budget to cover the Rs. 600+ billion tax shortfall, well-informed sources told ProPakistani. Instead, the government is focusing on expediting the disposal of pending tax cases in courts. The Chief Justice of Pakistan has approved a request to fast-track these hearings. Meanwhile, the tax shortfall for the July-February period has reached Rs. 601 billion, prompting urgent measures. In a significant move, the FBR managed to collect Rs23 billion in windfall tax from banks in a single day. These discussions come amid broader economic concerns, including fluctuations in the stock market, a slight rise in the dollar’s value, and continued volatility in commodity prices. Since Monday, negotiations are well underway between Pakistan and IMF for the second $1.1 billion loan tranche of the $7 billion program. Officials from the IMF, Federal Board of Revenue (FBR), and Benazir Income Support Program (BISP) are participating in the discussions. The Pakistani side remains hopeful that the lender will approve the first review and recommend to its Executive Board for releasing the second loan tranche.