No immediate mini-budget, confirms chief of tax authority.

Pakistan – (Special Correspondent / Web Desk) – Pakistan is preparing for important talks with the International Monetary Fund (IMF). Prime Minister Shehbaz Sharif has asked his economic team to seek as much financial relief as possible. This is due to the massive losses from the recent nationwide floods.

Officials have confirmed that they are not planning a mini-budget to add new taxes. The head of the country’s tax authority, FBR Chairman Rashid Mahmood Langrial, made this clear. He stated there is no immediate plan to impose any new taxes on citizens.

Instead, the government aims to meet its revenue goals by improving tax collection. They will focus on ensuring everyone pays the taxes they already owe. The team will try to persuade the IMF that this method, not new taxes, will boost revenue.

It is still too early to know if the annual tax target will change. That decision may come after discussions with the IMF. The government is looking at many options to handle the financial impact of the floods. These include special relief for victims and possible changes to budget goals.

Earlier, the government had thought about a special “flood levy” to pay for damages. However, that idea has not moved forward. Now, the new strategy will be presented to the IMF during the upcoming review.

Key proposals for flood relief are on the table. These include lowering electricity bills for affected families and making it easier for farmers to repay their loans. The government will also explain the tax shortfall caused by the floods and may suggest a slight reduction in the year’s economic growth target.

The Prime Minister has directed his team to strongly argue for Pakistan’s need for relief. The floods have put huge pressure on families, farms, and the entire economy. The Finance Ministry is determined to show that revenue can be increased without new taxes, all while protecting vulnerable communities.

No Flood Threat, Major Rivers Flowing Normally: PDMA

This new approach is a shift from earlier reports. Those reports said the government was preparing a mini-budget to raise at least 50 billion rupees. The proposed taxes included new levies on luxury cars, cigarettes, and imported electronics. That plan would have needed approval from the IMF.

The need for more money became urgent due to a tax collection shortfall. In August, tax collection was 50 billion rupees below its target. From July to August, revenue was nearly 40 billion rupees less than expected. Floods, lower energy use, and slow business activity have all made it harder to collect taxes.