IMF Pushes Pakistan Towards Mini-Budget Amid Tax Collection Shortfalls

Despite lofty claims of bringing more people into the tax net through various schemes and measures, the government badly failed in its endeavor as the International Monetary Fund (IMF) demanded to bring a mini-budget.

The global lender in a virtual meeting with the Federal Board of Revenue (FBR) authorities pointed out the shortfall in the tax collection targets promised by the government prior to the Extended Fund Facility (EFF) worth $7 billion finalised between the IMF and the Govt of Pakistan.

According to sources, the IMF rejected the request of the FBR for reviewing tax targets which could potentially put the release of second tranche by the IMF to trouble.

Sources said a mini-budget worth Rs500 billion could be announced by the government whereas an ordinance of the FBR Enforcement worth Rs60 billion can also be passed.

Meanwhile, Prime Minister Shehbaz Sharif has also sought performance report from the FBR chairman.

On the other hand, the FBR has also undergone a shakeup. Mir Badshah has been removed from the position of In-land Revenue Operations whereas Tariq Arbab has been turfed out as legal member. Hamid Atiq Khan has been appointed as member In-land Revenue Operations. In addition Najeeb Ahmad Memon has been replaced as member In-land Revenue Policy.

According to sources, the latest organizational shakeup has been done soon after Rashid Mehmood Langrial took the charge as FBR chairman.