Aurangzeb rules out ‘mini-budget’

ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has made it clear that the government is not introducing a mini-budget after constructive talks with the International Monetary Fund (IMF) and Federal Bureau of Revenue (FBR) will complete its tax collection target of Rs12,970 billion.

Talking to the media on Saturday, the finance minister said Pakistan has successfully achieved the target of primary surplus, the cabinet has approved the National Fiscal Pact, and there is no need to revise the NFC.

He said tax collections will be improved through enforcement and administrative measures. He said, “I am grateful to Chief Minister Sindh for approving the Fiscal Packet, adding that KP government has also supported Centre whenever there was a matter of national interest.”

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He said “the discussions with the IMF were constructive and productive. Virtual negotiations with the IMF, however, are ongoing, as certain points required in-person discussions.”

The minister emphasised that open and fact-based dialogue was held with the IMF team. According to the finance minister, the global lender’s delegation listened carefully to Pakistan’s position and appeared satisfied with the discussions.

“The purpose of the IMF’s visit was not to review the economy but to build confidence,” stressed Aurangzeb, who is a first-time finance minister, with a long working experience in the private banking sector.

In a statement earlier today, the IMF said it has urged Pakistan to broaden its tax base by targeting untapped revenue sources — as the country grapples with challenges in expanding its tax collection.

The Fund said the staff visits are standard practice for countries with semi-annual programme reviews and aim to engage with the authorities and other stakeholders on the country’s economic developments and policies and the status of planned reforms.