ByKarachi, Pakistan: The Pakistani government is gearing up to introduce a mini-budget to address a significant revenue shortfall. This move comes as the country faces pressure to meet the targets set by the International Monetary Fund (IMF).
The FBR has projected a shortfall of Rs 230 billion in the second quarter of the current fiscal year. To bridge this gap, the government is considering a series of revenue-generating measures, including:
- Increased Federal Excise Duty (FED): A hike in FED on aerated and sugary drinks.
- Higher Withholding Tax Rates: Increased withholding tax rates on imports of machinery, raw materials, and services.
These measures are expected to generate an additional Rs 97.2 billion in the remaining three quarters of the fiscal year.
The IMF has been closely monitoring Pakistan’s economic performance and has emphasized the importance of fiscal discipline. The mini-budget is seen as a crucial step to meet the IMF’s conditions and secure continued financial support.
While the mini-budget aims to address the immediate revenue shortfall, it is important to note that long-term solutions are needed to ensure sustainable economic growth. The government must focus on structural reforms, such as improving tax administration and broadening the tax base, to strengthen its fiscal position.
