Pakistan is expected to “introduce mini budget” as the Federal Budget Bureau (FBR) struggles to reach expectations.

For the first quarter of the fiscal year 2024-25, the Federal Board of Revenue (FBR) is required to collect a total of Rs 2,654 billion in taxes, with the required amount for September 2024 alone being Rs 1,190 billion.

According to the sources, the International Monetary Fund (IMF) may ask Pakistan to submit a small budget in order to finalize a loan package worth seven billion dollars if the Federal Budget Report (FBR) fails to meet the objective by the end of the first quarter (July-September).

For the purpose of increasing tax collection, the government is apparently contemplating a number of different steps, such as increasing the severity of the penalties for tax defaulters and maybe making changes to the Finance Bill.

On top of that, there is a risk that people who do not file their income tax returns by the deadline of September 30 could be considered late filers for a period of up to two years. Tax withholdings on income, car token taxes, and property-related transactions would be increased for individuals who filed their returns late.

The sources went on to say that the planned mini-budget might provide the tax authorities greater powers, which could potentially lead to more aggressive action being taken against those who do not comply with the regulations.

According to sources who are familiar with the situation, the International Monetary Fund (IMF) had previously expressed “concerns” regarding the growing circular debt in Pakistan’s power industry.

The Pakistani government disclosed the proposal to expand the circular debt in the power sector by an additional one hundred billion rupees during the current fiscal year during the virtual negotiations that they held with the International Monetary Fund (IMF).