To appease IMF and meet the tax collection target, govt. is preparing for a mini-budget worth more than Rs. 40 billion.
Preparations for a mini-budget worth more than Rs. 40 billion were started by the federal government to ensure the tax collection target is met and the preconditions set by the IMF for the release of two IMF tranches worth $1.17 billion are fulfilled.
“The government is eyeing fertilizer, sugar, and textile sectors” revealed a source from the Federal Board of Revenue (FBR).
It was also added that “The government plans to tax multiple sectors to collect Rs30 billion for the Pakistan State Oil (PSO),”
This move is a part of the government’s efforts to save PSO from going bankrupt. IMF stated last month that Pakistan would be receiving the $1.17 billion tranche in the next three to six weeks after reaching a staff-level agreement earlier this week.
“We’re hoping this will help to stabilize the economy and among other things help expand the social safety net to protect the most vulnerable; accelerate structural reforms; and help stabilize the macroeconomic situation in Pakistan,” Gerry Rice of the IMF Communication Department stated.
