Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has categorically dismissed speculation about a potential mini-budget midway through the fiscal year, asserting that no such plan is under discussion. His remarks come as Pakistan prepares for the next round of critical review talks with the International Monetary Fund (IMF), scheduled to begin on September 25.
Recent media reports had suggested that the government might resort to a mini-budget to raise additional revenue, particularly in light of devastating flood damages and the need to fund rehabilitation efforts. Proposals circulating in public discourse pointed to possible additional taxes on luxury goods and imported items as part of revenue-raising measures. However, Langrial directly refuted these claims.
“There is no plan to introduce a mini-budget,” he clarified, stressing that while multiple options had been floated in policy discussions, none of them have taken the shape of a formal proposal. His statement aims to reassure both domestic stakeholders and international observers at a time when fiscal stability remains a pressing concern.
Speaking ahead of the IMF mission’s arrival in Islamabad, the FBR chairman highlighted that discussions around flood-related expenditures have indeed taken place, but these do not include immediate changes in tax policy through a supplementary budget. He also emphasized that it was premature to comment on any revisions to the annual tax collection target, which remains an area of ongoing negotiation with the IMF.
According to well-placed sources, the government is preparing to request that the IMF lower its revenue target for the current fiscal year by approximately Rs300 billion. This would bring the target down from Rs14.131 trillion to around Rs13.7 trillion. The request reflects the significant fiscal strain posed by recent natural disasters, which have disrupted economic activity and constrained the government’s capacity to raise revenues at the projected pace.
The IMF’s upcoming review will be closely watched by economists, policymakers, and markets alike. A successful outcome will pave the way for the release of the next $1 billion tranche under the $7 billion Extended Fund Facility (EFF). Pakistan has already secured more than $2 billion through two earlier disbursements under this program, making the next tranche critical for maintaining foreign exchange reserves and supporting macroeconomic stability.
Observers note that Langrial’s remarks serve a dual purpose: signaling continuity in fiscal policy domestically while also demonstrating to the IMF that Pakistan is not rushing into politically sensitive revenue measures without broader consultation. The emphasis on avoiding a mini-budget suggests that the government is looking to strike a balance between meeting international commitments and maintaining internal economic stability.
As the IMF review approaches, the debate over Pakistan’s fiscal path is expected to intensify. The government will need to navigate the complex interplay between domestic political realities, flood rehabilitation needs, and the strict conditionalities tied to IMF support. For now, however, the FBR chairman’s message is clear: no mini-budget is on the table.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.