FBR Chairman Rules Out Mini-Budget Ahead of IMF Mission Visit

With the IMF team set to arrive soon, Pakistan’s top tax official, FBR Chairman Rashid Mahmood Langrial, has made it clear that there would not be a mini budget this time. In simple terms, the government is not planning to slap on new taxes right before the IMF’s visit.

FBR Chief Says No Mini-Budget Before IMF Talks

Langrial told reporters that while the government is weighing its options after the devastating floods, a mini budget just isn’t on the table. The idea of a special “flood levy” came up earlier, but it hasn’t gone anywhere. Instead, the plan is to stick to the existing revenue target and try to hit it by tightening tax enforcement and improving compliance.

The government is also working on some relief steps for flood-hit communities. Cutting or waiving electricity bills for September has been discussed, along with easier terms for farmers on their loans. Officials might even push for some relaxation of the FBR’s annual tax target, since collections have naturally taken a hit after the floods.

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So why take mini budget off the table? A big part of it is timing. People are already struggling with high prices, and adding new taxes now would be politically risky and socially unfair. Beyond that, Islamabad wants to show the IMF it can raise money without squeezing citizens further. The message is: “We’ll improve compliance, not pile on new taxes.”

The real test will be how the IMF responds. Will they accept Pakistan’s pitch that disaster losses justify some flexibility? Will they agree that enforcement, not new levies, is enough to stay on track? That’s what negotiators will brush up on in the coming days.

For now, the signal is straightforward: no mini budget before the IMF team lands, and a stronger focus on making the current tax system work better. Whether that’s enough to satisfy the Fund and to plug the gap left by the floods remains to be seen.