The International Monetary Fund (IMF) has urged the federal government of Pakistan to introduce a mini-budget to address a revenue shortfall of Rs. 189 billion or to devise a concrete plan to control fiscal expenditure. This demand comes amid ongoing discussions between Pakistani officials and the visiting IMF team.
Finance Secretary Imdad Ullah Bosal and Federal Bureau of Revenue (FBR) Chairman Rashid Mehmood Langrial recently held their first meeting with the IMF representatives. Despite Pakistan’s efforts to meet the IMF’s requirements, the negotiations are expected to be challenging.
Finance Minister Muhammad Aurangzeb has already informed the IMF about the collection of Rs. 11 billion in taxes from retailers, wholesalers, and distributors during the first fiscal quarter. Additionally, the FBR has increased tax collections by enforcing stricter regulations.
During the talks, Power Division officials briefed the IMF on proposed higher fixed rates for on-grid solar energy, which could potentially slow the adoption of solar power.
The IMF is focused on implementing corrective measures to prevent further fiscal slippages and to address potential financial gaps before February-March 2025. If expenditure cuts remain insufficient, the IMF may push more aggressively for a mini-budget to enhance the tax-to-GDP ratio to the desired levels.
