The International Monetary Fund (IMF) has issued a warning that if the Federal Board of Revenue (FBR) falls short of its tax collection target for the first quarter (July-September) by Rs60 billion, the tax authority will be required to implement a contingency plan during the current fiscal year. This could result in the introduction of a mini budget.
The newly appointed FBR chairman faces the critical task of meeting the tax collection target for the first three months of the fiscal year. Senior officials confirmed that if the FBR fails to meet this target, as outlined in the IMF’s contingency plan, the government may have no choice but to introduce additional fiscal measures.
The agreed-upon tax collection target with the IMF for the first quarter is Rs2,652 billion. In July 2024, the FBR managed to exceed its monthly target by Rs4 billion, collecting Rs660 billion against the assigned target of Rs656 billion. Despite this initial success, the pressure remains on the economic managers to achieve the remaining Rs2,592 billion for the quarter to avoid the IMF’s demand for a mini budget.
The IMF has underscored the importance of avoiding revenue collection shortfalls in the first quarter to ensure financial stability and adherence to the agreed fiscal framework.
