FBR denies mini-budget, GST on petroleum products in IMF talks

Islamabad: Pakistan’s Federal Board of Revenue (FBR) on Wednesday assured that no mini-budget will be introduced while affirming the government’s commitment to maintain the annual tax target of Rs12,970 billion.

According to reports, FBR also stated that the General Sales Tax (GST) will not be imposed on petroleum products, aligning with ongoing discussions with the International Monetary Fund (IMF).

Sources also indicate that the IMF has expressed satisfaction over 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 seen as a positive indicator of Pakistan's fiscal policies.

The IMF delegation reportedly viewed this increase as progress in stabilising Pakistan’s economic base.

The FBR further revealed that tax collection on agricultural income is set to begin next year, signalling an effort to broaden the tax net and sustain revenue generation in the longer term.

More talks between the IMF and Pakistani officials are scheduled, with the parties expected to review potential adjustments to Pakistan’s trader-friendly schemes.

As part of Pakistan’s commitment to meet fiscal targets, the FBR highlighted recent successes in tax collection, reporting that Rs12 billion has been collected from the retail sector over the past three months.