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There is No need for a mini-budget and no GST on petroleum products, FBR tells IMF

ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) has confirmed that no mini-budget will be introduced, emphasizing the government’s commitment to maintaining its annual tax target of Rs12,970 billion in 2024-25.

FBR sources clarified that the General Sales Tax (GST) will not be applied to petroleum products, aligning with the government’s ongoing discussions with the International Monetary Fund (IMF).

The IMF has expressed satisfaction with Pakistan’s recent economic performance, particularly the increase in the tax-to-GDP ratio, which has risen from 8.8 percent to 10.3 percent—a 1.5 percent improvement that the IMF views as a positive sign of fiscal stability.

The IMF delegation reportedly acknowledged this increase as progress toward strengthening Pakistan’s economic foundation.

The FBR also announced that tax collection on agricultural income will commence next year, reflecting efforts to expand the tax base and ensure sustainable revenue growth.

Further discussions between the IMF and Pakistani officials are scheduled, with both parties expected to review possible adjustments to Pakistan’s trader-friendly schemes.

In line with its fiscal goals, the FBR reported success in tax collection from the retail sector, collecting Rs12 billion over the last three months.

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I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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